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ESOS Phase 3
ESOS (The Energy Savings Opportunity Scheme) is a mandatory energy assessment scheme that applies to large UK undertakings and their corporate groups that are large enough to meet the qualification criteria set out below.
Start work towards ESOS Phase 3 compliance
Our EXPERT team can help your company comply with ESOS Phase 3.
Do you need to comply with ESOS Phase 3?
You will if you have either:
- An average of more than 250 employees
- Turnover greater than or equal to €50,000,000 and a balance sheet of €43,000,000.
Failure to comply will result in a range of financial penalties up to £90,000, as well as being publicly named as a non-compliant company.
Do you require support in meeting ESOS Phase 3 recommendations?
Many businesses require support to action the recommendations of a Phase 3 ESOS report. If you would like to discuss the options we have available please call us on 03304 410011 or
ESOS Phase 3 Deadline
With a deadline of 5th December 2023, ESOS is now in Phase 3 and applies to businesses with a turnover greater than or equal to €50,000,000 and a balance sheet of €43,000,000.
For guidance planning for ESOS phase 3 please contact us on 03304 410011 or
What is ESOS?
ESOS stands for the Energy Savings Opportunity Scheme and was introduced by the UK government’s Department of Energy and Climate Change (DECC) on 17 July 2014 to help promote business energy efficiency.
It is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria and is administered in the UK by the Environment Agency.
Eligible companies must undergo an assessment of energy use and energy efficiency opportunities and submit an energy report to the Environment Agency every four years.
Who is eligible?
You must take part in ESOS if your organisation, or any UK undertakings in your group, qualifies as a large undertaking on the qualification date.
The ESOS definition of a ‘large undertaking’ is:
You have over 250 members of staff, or
A turnover of over £44.1m, or
An annual balance sheet of over 43 million Euros (£37.9m), or
You are an overseas organisation with over 250 employees in the UK, or
Your company is part of a larger organisation, which falls into any of the above.
What are the benefits?
The scheme is estimated to lead to £1.6 billion net benefits to the UK (ESOS Impact Assessment DECC0142, 24 November 2014), with the majority of these being directly felt by businesses as a result of energy savings.
There are also many other business benefits to improving energy efficiency, such as improved working conditions for staff, improved customer experience, more efficient processes, reduced maintenance costs, and improved business image.
Energy efficiency is also a key measure for the UK in meeting interim carbon budget targets. BEIS’s head of business and industrial energy efficiency, tax and reporting, Gary Shanahan, noted that ESOS has helped UK businesses collectively save 3TWh of energy each year, on average, since Phase 1 commenced in 2014.
ESOS Phase 3 – Latest Updates
The 5 December 2023 deadline may seem a distant date, however gathering energy consumption data can be time-consuming. This is true particularly for companies spread over multiple sites or those who have undergone a number of significant changes between phases.
There are many business benefits to better energy efficiency, including improved working conditions for staff, improved customer experience, more efficient processes, reduced maintenance costs, and improved business image.
Energy efficiency is also a key measure for the UK in meeting interim carbon budget targets. BEIS’s head of business and industrial energy efficiency, tax and reporting, Gary Shanahan, noted that ESOS has helped UK businesses collectively save 3TWh of energy each year, on average, since Phase 1 commenced in 2014.
