The Most Important Things Happening in ESOS Right Now

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• The Most Important Things Happening in ESOS Right Now

11 April 2024

ESOS Lead Assessor and Senior Energy Consultant Sam Arje explores the Environment Agency's changes to the Energy Saving Opportunity Scheme and how this will impact organisations that must comply with the scheme. 

Sam is an award-winning Energy Manager at TEAM Energy, with extensive experience in establishing successful sustainability strategies and implementing energy projects. Sam is an experienced energy project manager with a passion for sustainability, driving down energy consumption and reducing carbon emissions. As Senior Energy Consultant, Sam's primary responsibility is to lead strategically on the development of TEAM’s consultancy portfolio as well as provide a range of energy management services.

What is The Energy Saving Opportunity Scheme?

The Energy Saving Opportunity Scheme (ESOS) is a UK government scheme that aims to encourage large UK businesses to implement energy saving measures and support the government in reducing the country’s carbon emissions and help work towards achieving net-zero by 2050.

Currently, the UK is in Phase 3 of the ESOS scheme, with organisations that must comply with the scheme being required to submit their reporting by 5 June 2024.

Over recent months, there have been several changes to the scheme that may impact the way businesses make their submissions and what they will need to include to ensure their compliance.

Here are five of the most important things that are happening in ESOS right now:

1. Businesses Have More Time to Comply With ESOS Phase 3

The Environment Agency announced that they will not take action if organisations do not submit their notification of compliance by 5 June 2024. However, organisations that comply with ESOS must register their account with the new IT system by 5 June 2024, and submit their notification of compliance by 6 August 2024. Giving businesses more time to comply with ESOS Phase 3.

2. Annual ESOS Action Plans Needed

Organisations will be required to submit a yearly ESOS Energy Action Plan following their ESOS submission, providing annual progress reports on how they are implementing their energy saving opportunities and commitments.

3. The Energy Action Plan is Subject to Public Disclosure

The Energy Action Plan will be recorded by the Environment Agency and published publicly. If an organisation does not make any energy saving changes to their business or if they do not complete the Action Plan, this will also be published publicly. Public Disclosure could have several implications for businesses, including reputational impact, competitive sensitivity and risking penalties for failing to comply with ESOS.

4. ISO 50001 Certified Businesses Are No Longer Exempt from ESOS Reporting

Organisations that have ISO 50001 will also be impacted by changes. Previously organisations that are certified under ISO 50001 were exempt from ESOS reporting. However, changes to the scheme now require these organisations to submit detailed reporting, including data on energy saving achieved by the organisation since the previous compliance period.

5. Phase 4 Deadline is Still Set for 2027

Despite the ESOS Phase 3 deadline extension, Phase 4 of the ESOS scheme is still due on 5 December 2027, with the 4 year compliance date between 6 December 2023 – 5 December 2027. Phase 4 is also expected to see changes as it will focus on both energy efficiency within organisations and will require more details on how they plan to become net-zero.

Picture: a photograph of a person sitting at a desk, looking at a tablet with a bar chart on it. A calculator, paperwork, pen and a cup can also be seen on the desk. Image Credit: Unsplash

Article written by Sam Arje | Published 11 April 2024

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