ESOS Phase 2 deadline reminder

The Energy Savings Opportunity Scheme (ESOS) Phase 2 deadline is fast approaching.

ESOS is a mandatory requirement for UK organisations which have over 250 employees, or an annual turnover exceeding €50 million and a balance sheet exceeding €43 million.

To comply with ESOS, obligated companies are required to measure their total energy consumption including energy used by buildings, industrial processes and transportation; they must then carry out audits to identify cost-effective energy efficiency opportunities. There are a number of ways of meeting these obligations, the most common are to either have an energy audit carried out by a competent lead assessor or by implementing an energy management system and achieving certification to ISO 50001. Lead assessors can be employees or external contractors, but they must be members of an approved professional body.

There is no requirement for an organisation to carry out any of the opportunities it has identified, but the aim of ESOS is to encourage organisations to take action on the findings.

No matter which route an organisation chooses to meet its compliance obligations, it must notify the Environment Agency of its compliance via the online system. The deadline for Phase 2 is 5th December 2019.

Many organisations received enforcement notices from the Environment Agency as a result of not submitting their evidence by the deadline for Phase 1, which had a compliance deadline of 5th December 2015. Fines also followed, ranging from £1,000 to the largest fine of £45,000 issued to Amdocs (UK) Ltd.

If you are close to the qualification thresholds, or there have been changes to your business recently such as joining a larger group, it is recommended that you refer to the ESOS Phase 2 Guidance to clarify whether you are obligated as soon as possible.

Please take note of this reminder to ensure compliance is achieved by the deadline, and to avoid any enforcement action.