Energy Savings Opportunity Scheme for large UK enterprises

The Energy Savings Opportunity Scheme (ESOS) is a mandatory requirement for all large enterprises in the UK. The deadline for submission of Phase 3 reports is 5th June 2024.

The scheme requires a survey and audit of energy usage and reporting of energy data for buildings, transport, and industrial processes over a 12-month period. All surveys have to be undertaken by a qualified Lead Assessor.

ESOS is designed to help businesses reduce carbon emissions, identify potential cost saving measures and how to implement them.

The diagram below illustrates the criteria for eligibility.

The point of ESOS

ESOS is not meant to tax industry but to help businesses become more energy efficient and energy aware. The overall aim is to reduce consumption and therefore carbon emissions, your Lead Assessor’s report will identify potential cost saving measures and how to implement them. Taking action on the results of the audit is not compulsory.

How is Phase 3 different from previous phases?

Phase 3 requires an increase in auditing as areas of significant energy consumption have increased to 95%.

This will include data collection, site surveys, report writing, portfolio extrapolation and a sign off presentation to a director. Half the number of Lead Assessors are available to complete the compliance sign-off, increasing pressure on the market.

What are the sanctions for non-compliance?

The financial penalty can be up to £50,000 with an additional £500 per day.

Unlike with previous ESOS phases where the Environment Agency has been lenient, late submission of phase 3 compliance will likely receive enforcement action with penalties.

How can Control Energy Costs help?

CEC ensured compliance for over 40 large companies under Phases 1 & 2, so are well-placed to assist any business with Phase 3.


Contact: Nigel Addison-Evans