Energy Management – Energy Savings Opportunities Scheme

Key points

  • The Energy Savings Opportunity Scheme (ESOS) Regulations are regulations which for Phase 3 will apply to business with 250 employees based in the UK or elsewhere, have an annual turnover in excess of £44,000,000, or a balance sheet value in excess of £38,000,000.
  • A business must take part in ESOS if the undertaking is part of a corporate group which includes another UK undertaking or UK establishment which meets these criteria.
  • UK registered establishments of an overseas company will also need to take part in ESOS (regardless of their size) if any other part of their global corporate group activities in the UK meet the ESOS qualifying criteria.
  • Participation is not discretionary
  • It is enforced, rigorously, by the Environment Agency
  • Penalties for non-compliance can be severe


What is the Energy Savings Opportunity Scheme (ESOS)?

ESOS is a regulatory scheme which requires business or a size above certain prescribed thresholds to review aspects of their energy consumption.

Phase 2 of ESOS has already started, the qualification date for which is 31 December 2018, and requires one year’s energy consumption measurement between 6 December 2014 and 5 December 2019. The Compliance date for Phase 2 was 5 December 2019.

The Phase 3 ESOS qualification date is 31 December 2022, and requires one year’s energy consumption measurement between 6 December 2019 and 5 December 2023.  The Compliance date for Phase 3 of ESOS is 5 December 2023.


Compliance with ESOS is overseen by the Environment Agency and enforcement is followed through with fines which can start at £50,000 and rise to £90,000 in serious cases of none compliance.  For Phase 1 of ESOS, to June 2017 the Agency had served over 300 Enforcement Notices on organisations with a further 200 organisations sent such Notices.

Phase 2 enforcement notices have been issued by the Environment Agency despite COVID-19 restrictions.

If you still have to comply with ESOS Phase 2 and have not yet done so, or wish to check existing systems are able to demonstrate compliance with ESOS Phase 3, West London Energy Assessors can assist eligible business within the scope of the Regulations achieved compliance, and has staff fully accredited to do so.