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Four Months to Comply with ESOS - Is your organisation ready?

on Friday, 07 August 2015.

The Energy Savings Opportunity Scheme is an energy assessment scheme which aims to encourage greater energy efficiency amongst large organisations.

The regulations underpinning ESOS require qualifying organisations to report on the first assessment period by 5 December 2015.

Do we need to comply with ESOS?

ESOS participation is mandatory amongst 'large undertakings'. These are organisations with either:

  • 250 or more employees, or
  • an annual turnover of more than €50million (currently £38,937,777) and an annual balance sheet in excess of €43million (currently £33,486,489).

If your organisation meets either of these criteria, it is highly likely that it will need to comply with ESOS. This is irrespective of business sector, energy use, existing energy assessments undertaken or accreditations already achieved.

What does ESOS require us to do?

Qualifying organisations must calculate their total energy consumption, carry out energy use assessments and identify areas where energy use might be reduced. The audit must be conducted by a qualified Lead Assessor and include data from any 12 month period between 1 January 2014 and 5 December 2015. A formal evidence pack must also be maintained as the audit needs to be repeated every four years.

What is the 5 December deadline for?

This is the deadline for Lead Assessors to notify the Environment Agency of ESOS compliance. If qualifying organisations fail to meet this deadline they may face enforcement action.

ESOS is a 'carrot and stick' scheme. The carrot is the potential energy efficiency benefits participants can achieve, translated into reduced overheads. However, the stick is considerable, in the form of both financial penalties (ranging from £5,000 to £50,000) and the threat of a published list of organisations which have failed to comply.

How can VWV help you?

There are some limited exemptions from ESOS, and factors including group structure which can lead to a complex exercise in determining whether an organisation qualifies.


For an introduction to these issues and advice on the next steps for your organisation, including how to find a Lead Assessor, please contact Thomas Ewings in our Commercial Property Law Team on 0117 314 5387. Thomas is a member of our experienced team of energy lawyers.