Energy Saving Opportunities Scheme (ESOS)

The Energy Saving Opportunities Scheme (ESOS) is a mandatory energy assessment and energy saving identification scheme for large organisations. This scheme, which came into force in 2014 in response to Article 8 of the EU Energy Efficiency Directive, applies throughout the UK and requires ESOS assessments every four years.

ESOS affects organisations that qualify as large undertakings on the 31 December (the latest qualification date being 21 December 2022), i.e. those that have:

• 250 or more employees OR
• a turnover exceeding £44,845,000 AND
• a balance sheet exceeding £38,566,700

If you are part of a group which includes an organisation that meets the criteria then all UK companies within corporate group must comply.

Large undertaking status

The large undertaking status is determined by whether a business has maintained its size for at least two consecutive accounting periods.

Qualification is based on the status of your organisation on the relevant qualification date.

If your organisation qualifies, you must participate in ESOS and notify compliance to the Environment Agency by the last date of each compliance period (‘the compliance date’).

The deadline for the first compliance period was 5 December 2015 with the second compliance period ending 5 December 2019. If these deadlines were missed action still needs to be taken.

The next compliance notification date will be 5 June 2024, with the qualification date of 31 December 2022.

Affected organisations must complete an ESOS Assessment:

• measure total energy consumption over a 12 month period
• determine areas of significant energy consumption
• carry out an ESOS compliant energy audit or alternative compliance route such ISO 50001:2011 – Energy Management System (EnMS)
• confirm compliance with ESOS with the relevant environment agency by 5 December of the compliance year