What is ESOS?
ESOS (Energy Savings Opportunity Scheme) is a certification scheme in the UK that has been established by the Department of Energy and Climate Change (DECC). This was in response to the requirement for all Member States of the European Union to implement Article 8 of the Energy Efficiency Directive 2012/27/EU.
DECC published the ESOS regulations 2014 on 26 June 2014, which give effect to the scheme.
The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and energy saving identification scheme for large companies (and their corporate groups).
Our manual provides detailed information about ESOS and ISO 50001.
Where does ESOS apply?
The scheme applies throughout the UK.
Who falls under the scope of ESOS?
Large undertakings (and their corporate groups).
For the purposes of ESOS, an undertaking is a large undertaking if it meets any of the following criteria:
- It has 250 or more staff; or
- It has fewer than 250 staff but has an annual turnover over £44 million and an annual balance sheet exceeding £38 million, or
- It is part of a corporate group which includes a large undertaking (as defined by (1) or (2), above)
- ESOS does not apply to the public sector
The ESOS Compliance Deadline ends NOW!
What are the Penalties for Non Compliance with ESOS?
The scheme compliance bodies will have the authority to apply civil penalties against an organisation/group found to be required to participate in ESOS and found to be non-compliant with its requirements.
For all non-compliances, the compliance bodies will have the power to publish information on non-compliance on their website such that this information is available to the public.
This will include:
- the name of the ESOS participant;
- details of the failure in respect of which a civil penalty has been imposed; and
- the penalty amount.
For failure to notify the Scheme Administrator of compliance by the required date and/or failure to provide basic details as part of notification, there will be a fixed penalty and an additional penalty for each day of non-compliance:
- a fixed penalty of up to £5,000; and/or
- an additional £500 for each day starting on the day after the date of compliance until the notification is completed, subject to a maximum of 80 days; and/or
- publication of details of non-compliance by the compliance bodies.
For failure to maintain adequate records to demonstrate compliance with ESOS the penalty which can be applied is:
- a fixed penalty of up to £5,000; and/or
- the cost to the compliance body for undertaking sufficient auditing activity to confirm that an organisation has complied with ESOS; and/or
- publication of details of non-compliance.
For failure to undertake an ESOS Assessment there will be a discretionary penalty.
The penalty is:
- a requirement to conduct an ESOS Assessment by a date specified by the compliance body; and/or
- a penalty of up to £50,000; and/or
- an additional £500 per day penalty for each day starting on the day after the compliance date that the organisation remains non-compliant, subject to a maximum of 80 days; and/or
- publication of details of non-compliance.
Failure to comply with an enforcement, compliance or penalty notice
The penalties are:
- a fixed penalty of up to £5,000; and/or
- an additional £500 for each day starting on the day after the date of compliance until the notification is completed, subject to a maximum of 80 days; and/or
- publication of details of non-compliance.
For making a statement which is false and misleading there will be a monetary penalty that is flexible enough to take account of the nature of the misdemeanour and large enough that it can act as a deterrent to this offence.
The penalty is:
- a monetary penalty of up to £50,000; and
- publication of details of non-compliance.
The ESOS certification cycle
ESOS assessments are carried out every four years. Organisations must assess whether or not they are obliged to participate in ESOS on the qualification date of each phase. The qualification date for the first phase was 31 December 2014.
Phase | Qualification Date | Four-year-compliance phase | Compliance Date |
|---|---|---|---|
1 | 31 December 2014 | 6 Dec 2011 – 5 Dec 2015 | 5 December 2015 |
2 | 31 December 2018 | 6 Dec 2015 – 5 Dec 2019 | 5 December 2019 |
3 | 31 December 2022 | 6 Dec 2019 – 5 Dec 2023 | 5 December 2022 |
ESOS and ISO 50001
If you business qualifies for ESOS but it’s also certified for ISO 50001, then there is no necessity for an ESOS assessment. You just need to notify the Environment Agency that you are compliant with ESOS.
If you qualify for ESOS, but your organisation is not certified to ISO 50001, your organisation needs to undergo an ESOS assessment. The assessment helps you work out what your organisation needs to do to comply with the ESOS regulations.
Related Management Systems
ESOS assessment checklist
- Calculate your total energy consumption (over a 12-month period).
The calculation includes : energy consumed by buildings, industrial processes and transport. To find out how to calculate your total energy consumption read the full ESOS guidance. - Energy audits
A successful audit will show you where your energy-intensive areas are (>90% of your total consumption). After this then you have to:
a. check whether ISO 50001, DECs or GDAs cover any of your areas of significant energy consumption b. identify whether ESOS compliant energy audits have been, or need to be, carried out for the areas of significant energy consumption not covered by ISO 50001, DECs or GDAs - Choose a lead assessor
A lead assessor will conduct your energy audit and overall ESOS assessment. For further information, contact us. - Inform the Environment Agency
Submit your ESOS notification Compliance to the Environment Agency as soon you are in accordance with the ESOS requirements. - Keep records
You need to keep records of your compliance with ESOS in an evidence pack. There is no set format for this.
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