ESOS stands for Energy Savings Opportunity Scheme, a mandatory energy assessment scheme aimed at encouraging qualifying organisations to reduce energy consumption and save on energy costs. The Energy Savings Opportunity Scheme Regulations require large UK organisations to carry out energy saving assessments. These assessments are carried out on a four yearly cycle, with the most recent phase 2 qualification date of 31 December 2022 having just passed.
To comply with ESOS, Businesses must calculate their total energy consumption, carry out energy audits and identify areas of significant energy consumption where energy savings could be made. Failure to comply can lead to financial penalties, making it important for qualifying organisations to take the necessary steps to meet ESOS requirements.
Through energy audits, organisations can identify potential areas for energy savings and make positive changes to reduce their carbon footprint and energy bills. With the recent deadline extension, qualifying organisations have additional time to make these important assessments and improvements. ESOS was established by the UK government in response to the European Union's Energy Efficiency Directive, aimed at improving energy efficiency across Europe. The scheme was introduced to help the UK meet its energy efficiency targets and reduce its carbon footprint. It applies to large UK organisations, defined as those with 250 or more employees, an annual turnover exceeding £44m or a balance sheet exceeding £38m. These qualifying organisations are required to comply with ESOS by carrying out energy assessments every four years.
By complying with ESOS, qualifying organisations can benefit from reduced energy costs, improved energy efficiency and a reduction in their carbon footprint. Failing to comply with the scheme can lead to significant penalties, with potential fines ranging from £5,000 to £50,000, depending on the severity of the breach. These penalties can quickly add up, making it vital for organisations to comply with ESOS regulations.
Given the importance of ESOS compliance, the UK government has recently announced an extension to the deadline for Phase 3 of the scheme. Originally set for December 2023, the new deadline is now June 2024. The government stated that this extension would provide qualifying organisations additional time to meet their obligations under ESOS, particularly given the disruptions caused by the COVID-19 pandemic.
The extension of the deadline has been welcomed by many qualifying organisations, as it provides them with more time to complete their energy assessments and identify areas for energy savings. This additional time can be used to make positive changes to their energy consumption and reduce their carbon footprint, benefiting both the organisation and the environment.
ESOS is a rigorous energy efficiency scheme that requires businesses to audit their energy consumption and identify ways to improve their energy efficiency. With the deadline for Phase 3 previously set for December 2023, businesses were under pressure to complete their audits in a timely manner. However, a fully compliant ESOS submission can take anywhere from 6 to 9 months to complete, and with the demand for ESOS lead assessors expected to skyrocket as the deadline approaches, there were growing concerns that businesses would struggle to meet the December 2023 deadline.
Compiling 12-month qualifying data in advance of the reporting deadline is advisable, but many businesses were already falling behind in their preparation due to the impact of the Covid-19 pandemic on their operations. The deadline extension to June 2024 provides a much-needed buffer for businesses to complete their audits without feeling rushed or pressured. The extension also signals that a large proportion of businesses are yet to reach compliance with ESOS Phase 3, with limited time to meet the criteria.
We highly recommend that businesses start their ESOS compliance process now to ensure that they meet the new deadline. Instructing an ESOS lead assessor will guarantee compliance and ensure that businesses are implementing energy-efficient measures that reduce their carbon footprint and energy costs. The deadline extension is a positive development for businesses and will help them focus on improving their industrial processes and reducing energy consumption, leading to a more sustainable and prosperous future for all. With a fully compliant ESOS submission taking anywhere from 6 to 9 months to complete, businesses were struggling to meet the original December 2023 deadline.
It is essential to note that the demand for ESOS lead assessors will significantly increase as the new deadline approaches. Businesses need to book a lead assessor as soon as possible to avoid the inevitable rush that will occur as the deadline draws near. To ensure that a business's energy audit is done accurately and meets all necessary compliance requirements, companies need to start the ESOS compliance process now.
With the increasing demand for Phase 3 energy assessors, it is imperative to promptly secure the services of an energy assessor. Green Zone Surveys specialises in ensuring building compliance and can offer valuable assistance in achieving ESOS Phase 3 compliance and addressing your broader compliance needs. Take decisive action now by contacting us today!
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