Energy Saving Opportunity Scheme (ESOS)

Question: What is the Energy Savings Opportunity Scheme?

Answer: The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme for large organisations in the UK, established under the ESOS Regulations 2014 and administered by the Environment Agency. Qualifying organisations must audit the energy used by their buildings, industrial processes and transport every four years, identify cost-effective energy-saving opportunities and report compliance to the Environment Agency.

ESOS Phase 3 required compliance by 5 June 2024 and Phase 4 requires compliance by 5 December 2027.

Question: Which organisations must comply with ESOS?

Answer: ESOS applies to UK organisations that on the qualification date either employ 250 or more people, or have an annual turnover exceeding £44 million and a balance sheet total exceeding £38 million. It also applies to smaller organisations that are part of a corporate group containing a qualifying undertaking. Public sector bodies are generally excluded.

Question: What does ESOS compliance involve?

Answer: Compliance requires:

• Measuring total energy consumption across buildings, processes and transport
• Identifying areas of significant energy consumption covering at least 95 per cent of the total
• Carrying out ESOS-compliant energy audits, or using ISO 50001, Display Energy Certificates or Green Deal Assessments as alternative routes
• Producing an ESOS report with energy-saving recommendations
• Review and sign-off by a registered ESOS Lead Assessor and a board-level director
• Notifying the Environment Agency of compliance
• From Phase 3, publishing an action plan and annual progress updates

Question: What is an ESOS Lead Assessor?

Answer: An ESOS Lead Assessor is an energy professional registered with an approved professional body register, such as CIBSE, the Energy Institute or the Institute of Environmental Management and Assessment. The Lead Assessor reviews or carries out the energy audits and confirms that the assessment meets the ESOS requirements before the organisation notifies compliance.

Question: What are the ESOS Phase 3 and Phase 4 changes?

Answer: Recent changes have strengthened the scheme, including a reduced de minimis threshold so that audits must cover 95 per cent of energy, a requirement for reports to include an energy intensity ratio and more detailed recommendations, the publication of ESOS action plans setting out which measures will be implemented, and annual progress updates. These changes bring ESOS closer to a continuous energy management process.

Question: What are the penalties for non-compliance?

Answer: The Environment Agency can impose fixed penalties of up to £50,000 for failing to comply, with additional daily penalties for continued non-compliance, and can publish details of non-compliant organisations. Failure to maintain records, provide accurate information or complete the audit properly can each attract penalties.

Question: Why choose Syntegra Group for ESOS compliance?

Answer: Syntegra Group's registered ESOS Lead Assessors deliver ESOS energy audits and compliance for organisations across the UK, covering buildings, industrial processes and transport. Our auditors are Chartered Engineers who identify practical, costed energy-saving measures rather than simply ticking the compliance box, and we support clients in producing action plans, implementing recommendations and reporting progress.