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Energy Savings
Opportunity
Scheme (ESOS)

ESOS is an energy auditing and assessment scheme introduced by the UK government, intended to encourage large enterprises in the UK to focus on being more energy efficient. It is mandatory for those organisations which meet the qualification criteria.

If your company qualifies for the Energy Savings Opportunity Scheme (ESOS), it must undertake an energy assessment and audit every four years and to identify ways to save energy.

The Energy Savings Opportunity Scheme (ESOS) reports are submitted every four years and look ahead to identify potential opportunities to improve energy efficiency in an organisation. ESOS reports should quantify the potential energy saving, as well as the financial implications of any potential opportunities to implement energy efficiency measures.

Streamlined Energy and Carbon Reporting is annual and looks backwards and details any energy efficient actions that have been implemented during the reporting year, with the idea that the benefits of such actions will show in the organisation’s Intensity Ratio (when compared to previous years’ ratios). If energy efficient actions have been put in place due to recommendations in previous ESOS reports, it is recommended that the ESOS report is referenced within the SECR section of the organisation’s annual report.

The qualification date for ESOS Phase 3 is the 31 December 2022. The qualification date for ESOS Phase 2 was 31 December 2018. The Energy Savings Opportunity Scheme (ESOS) applies to all non-SME (small and medium enterprises) with:

250 or more employees

(in the UK or abroad).
This figure is based on an average number
employed in the year

An annual turnover of €50m

(£44,845,000) or more, or an annual balance sheet exceeding of €43m (£33,566,700) for Phase 2, or an annual turnover of £44 million or more, and an annual balance sheet of £38 million or more

The qualification date for ESOS Phase 3 is the 31 December 2022. The qualification date for ESOS Phase 2 was 31 December 2018. The Energy Savings Opportunity Scheme (ESOS) applies to all non-SME (small and medium enterprises) with:

Calculate

Calculate the total amount of energy consumed by your organisation – that used by buildings, manufacturing processes, and transport.

Identify

Identify the activities and assets that account for at least 90% of your total energy consumption.

Review

Appoint a lead assessor to carry out and review your energy audits and ESOS assessments.
This may be an employee or an external approved contractor.

Notify

On completing your ESOS assessment, you must then notify the Environment Agency you are compliant with your obligations.

Record

An evidence pack will need to be compiled keep a record of how you have complied with your

As of January 2021, UK installations are no longer in the EU ETS. They are in the UK ETS, which abides by very similar rules and principles.

For more details visit https://www.gov.uk/guidance/energy-savings-opportunity-scheme-esos.

If you qualify for the Energy Savings and Opportunity Scheme, and your organisation has fully achieved ISO 50001 certification, you do not need to carry out an ESOS assessment and you will be considered to have met your ESOS obligations. You just need to notify the Environment Agency.
Swan Energy Know How
We help our clients to gain the most out of the Energy Savings Opportunity Scheme (ESOS), and take the headache out of compliance.