How much could your business save?Find out now!
Or, you can call us on:0800 411 8830

Energy Savings Opportunity Scheme (ESOS): are you compliant?


The Energy Savings Opportunity Scheme (ESOS) is already running and not optional. Fines could run to tens of thousands. What is ESOS and does it apply to you?

 

What is the Energy Savings Opportunity Scheme (ESOS)?

The Energy Savings Opportunity Scheme (ESOS) means many UK companies must undertake in-depth analysis of their energy usage to identify potential energy savings. These audits are required every four years.

ESOS is not optional – it was introduced in July 2014 by the UK Government to comply with the European Energy Efficiency Directive.

Does my company qualify for ESOS?

Surprisingly, the type of work your company does and the amount of energy you use are irrelevant. In short, you must comply if:

  • You employ 250 people or more
  • You have an annual turnover exceeding €50 million (around £37 million at time of writing) and a balance sheet of more than €43 million (around £32 million at time of writing)
  • You are part of a group that includes at least one entity that meets at least one of the above criteria

Even those in non-for-profit and public sectors may have to comply with ESOS.

My company is borderline – do I have to comply with ESOS?

If you are very close to the threshold for qualification or have recently grown or shrunk, you may need to look back over several accounting periods. Need to comply is determined by whether you have maintained size for at least two consecutive accounting periods. The (somewhat technical) exact wording reads:

“Where, in any accounting period, an undertaking is a large undertaking (or a small or medium undertaking, as the case may be), it retains that status until it falls within the definition of a small or medium undertaking (or a large undertaking, as the case may be) for two consecutive accounting periods.”

What are the compliance deadlines?

The original qualifying date for ESOS was 31 December 2014 so initial requirements on compliance are based on the nature of your company at that time. Subsequent compliance periods are every four years after that:

Compliance period Qualification date Compliance period Compliance date
1 31/12/1417/07/14* to 05/12/1505/12/15
2 31/12/1806/12/15 to 05/12/1905/12/19
3 31/12/2206/12/19 to 05/12/2305/12/23
4 31/12/2606/12/23 to 05/12/2705/12/27

What is the easiest way to be ESOS compliant?

An ISO 50001 energy management system certified by an accredited body and covering all your energy use counts as your ESOS assessment. To be compliant:

  • the certification must remain valid at the compliance date
  • the Energy Management System must cover all of the assets held and activities carried on by your organisation as at the qualification date

Other acceptable substitutes are:

  • Display Energy Certificates (DECs)
  • Green Deal Assessments (GDAs)
  • ESOS compliant energy audits

What are the penalties if I don’t comply with ESOS?

Penalties range from what is essentially a slap on the wrist (a compliance notice asking for more details or an enforcement notice explaining how to comply with ESOS requirements) to fines ranging from £5,000 to £50,000. Perhaps most worryingly, an additional £500 can be charged for each working day for up to 80 days. Reputational damage could also result if you are ‘named and shamed’.

More information on ESOS

Complying with the Energy Savings Opportunity Scheme https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/445205/LIT_10094.pdf

Contact the Environment Agency ESOS help desk: ESOS@environment-agency.gov.uk

Our dedicated pages have lots more information about business gas and business electricity.

Related Articles

the week's energy news

The Week’s Top Energy News – 02/12/2016

The Christmas season has well and truly begun and, in true business style, you’ll either be incredibly b...

Read More
how to motivate your team

21 easy ways to motivate your team

Being a manager is tough, and understanding how to motivate staff isn’t necessarily straight forward. It...

Read More
small business santa

Could you win our small business Santa competition?

We don’t know about you but we are feeling very Christmassy right now. Carols on the stereo, mince pies for ...

Read More
Excellent, 9.5 / 10

Fixed up in no time!

"I was contacted by Jonathan Burgess after making an inquiry on line, who was very informative in finding me the best deal for my business. There was no pressure selling,only information given to assist me in making an informed decision. There was ample opportunity during the process to question or pull out if need be. Everything was made clear,and would definitely recommend others using the service."

This review was posted by john kril on the 05th of September 2016

Brilliant Service

"I was contacted by Aaron Gallagher after visiting SwitchMyBusiness.com. He was very helpful and knew a lot about the different contracts available but did not push me into an instant decision. Once our Directors had decided on the contract they wanted I called Aaron on his direct line and arranged our new contract. Aaron was at all times friendly and professional, completely different to other companies who contacted me about our renewal who were arrogant and pushy. Would recommend SwitchMyBusiness to anybody who is looking to switch their energy."

This review was posted by Debbie on the 08th of September 2016

First Class Service

"I spoke with Mark Weeks today to get quotes for my business energy and he was extremely helpful. He talked me through the process clearly and also got me better prices than I could have done myself. Comparison sites are just so complicated and he did all the "leg work" for me. Very pleased with his assistance and would recommend SwitchmyBusiness to any of my friends and business acquaintances."

This review was posted by Debbie Andrew on the 08th of September 2016

Excellent

"Jonathan Burgess rang me back straight away and took me through my business switch. Polite thorough and easy to understand. Highly recommend to anyone looking to save money and switch business energy accounts. Thank you."

This review was posted by Suzanne Richmond on the 09th of September 2016

Happy

"Jonathan Burgess did a great job of helping me through switching my business with both gas and electric. He was very thorough ,clear spoken and a pleasure to speak to today. I would recommend anyone to use this service"

This review was posted by Louise holman on the 09th of September 2016