ESOS compliance

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Energy Saving Opportunity Scheme: Phase 2 Compliance

We are now in Phase 2 of the Energy Saving Opportunity Scheme (ESOS) which is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria where compliance is required by the government regulator. 

The regulations require large UK organisations to report on three criteria before the deadline of 5 December 2019. These are:

  • Measure total energy consumption for buildings, industrial processes and transport.
  • Conduct audits to identify cost effective energy efficiency measures for areas of significant energy consumption.
  • Report compliance to their national scheme administrator. 

The overall structure of the scheme is largely the same as Phase 1, where just over 7,000 UK businesses fell within the compliance criteria. Organisations that are non-compliant with the regulations will be liable to compliance and enforcement activities.

The ESOS Regulations 2014 bring into force Article 8 of the EU Energy Efficiency Directive and mandate that large organisations in the UK undertake comprehensive assessments of energy use and energy efficiency opportunities at least every four years.

Do you qualify for ESOS?

Answer yes to any of the below and you will require ESOS surveys in order for an organisation to be compliant.

ESOS compliance questions

ESOS timescales

The table below shows the ESOS timescales up until 2023. Once Phase 3 is completed another method of energy monitoring and efficiency will come into force taking the UK into the late 2020s and early 2030s. The shape of that scheme is as yet unknown and details are currently complicated by Brexit.

ESOS timeframe

Take action early

Lessons learnt from Phase 1 by the Environment Agency, a government regulator, were the lack of early action taken and availability of lead assessor auditors to carry out surveys and data analysis. Also the poor quality of the energy data and subsequent audit reports which were not detailed enough and standards are expected to be considerably raised for Phase 2.

Participants are therefore strongly advised to get ahead of the demand and start on their audits straight away allowing more time to produce higher quality data and reports.

To date 15 businesses have been issued with civil penalty fines for non-compliance with values ranging from £1,500 and £45,000.


Where businesses have engaged positively with the information from the energy audits and implemented any recommendations relating to energy saving initiatives, energy operating costs and carbon emissions have been reduced. 


Further information

Contact Savills Energy


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