Energy Savings Opportunity Scheme (ESOS)
Why choose Wattcraft for your ESOS assessment?
Wattcraft offers more than just compliance. If you are interested in turning your ESOS assessment into a real opportunity for saving energy in your organisation, then Wattcraft can help you move on with delivering the energy improvements.
Wattcraft can provide you with qualified ESOS Lead Assessor sign-off as well as empowering you to put the recommendations into action and make genuine savings.
ESOS is focused on energy efficiency and indeed reducing the demand for energy should always be a priority. However working with Wattcraft you will have the opportunity also to assess the potential for renewable energy supply in connection with the assessment of the energy efficiency measures required for ESOS. This will help you establish the overall most cost-effective and high impact energy measures for your organisation.
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ESOS is a mandatory energy assessment scheme administered by the Environment Agency for organisations in the UK that meet the qualification criteria.
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Organisations must notify the Environment Agency by a set deadline that they have complied with their ESOS obligations.
The next deadline is 5 December 2027, by which all qualifying organisations must carry out their ESOS assessment and notify the Environment Agency.
This may seem a way off, but by starting the process of assessment now, you will allow a more efficient use of your resource with less distraction from your core business, as well as avoid paying a premium for an ESOS assessment at the last minute when there will inevitably be a high level of demand for Lead Assessors.
An additional consideration is that you now have time to consider ISO 50001 certification as an alternative route to compliance from and ESOS assessment, with the additional benefits this can bring in terms of structured ongoing energy improvements. Ideally at least a year is required to establish ISO 50001 in an organisation and this means starting to think about it now. Wattcraft can help you work out whether ISO 50001 or an ESOS assessment is better for your organisation and help you through the process.
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Failure to comply with ESOS by the deadline may result in the following penalties:
fixed penalty of up to £5,000
AND/OR an additional £500 for each day additional day of non-compliance, up to a maximum of 80 days
AND/OR Publication of details of non-compliance by the compliance bodies.
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Generally all energy that is both supplied to and consumed by your organisation is within the scope of ESOS. However you are allowed to exclude 5% of your total energy consumption from any audit or alternative compliance measures.
This “de minimis” exclusion can be on the basis of:
organisational group (excluding the energy consumption of one or more undertakings)
sites (excluding the energy consumption of more than one site)
asset/activity
fuel (e.g. excluding transport fuel if it comprises less than the de minimis proportion of overall energy consumption)
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For organisations with an iso 50001 energy management system
If your organisation has an ISO 50001 energy management system covering all your energy use at the compliance date, then this counts as your energy assessment. You then need a board director to confirm that your organisation is compliant based on the findings of your ISO 500001 certification and make a corresponding notification to the Environment Agency.
For organisations without an ISO 500001 energy management system
If your organisation is subject to ESOS and you do not have an ISO 500001 energy management system in place, then you must carry out audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures. These assessments have to be repeated every 4 years.
You need to appoint a qualified ESOS Lead Assessor to sign off your compliance. Rupert Blackstone of Wattcraft is a qualified ESOS Lead Assessor and can help you through this process.
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Your organisation is subject to ESOS if it qualifies as a large undertaking on the qualification date. For the next compliance period, the qualification date is 31 December 2022.
A large undertaking is a UK organisation that:
employs 250 people or more
AND/OR has an annual turnover greater than 50 million Euros and an annual balance sheet total in excess of 42 million Euros
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ESOS is focused on energy savings, which should always be a priority in accordance with the Energy Hierarchy (avoiding energy consumption before considering sustainable sources of energy supply). However, it makes sense to consider sustainable energy supply options (including renewable energy) alongside ESOS energy efficiency requirements, as with limited finances to invest in improvement measures, there is a threshold beyond which energy supply improvements give a more favourable yield in cost terms than energy efficiency measures. For example, increasing thickness of insulation has diminishing energy and cost benefits and there comes a point whereby combined heat and power , heat pumps or biomass heating may become a more attractive proposition than further increase in insulation.
The output of ESOS gives a ranking of energy efficiency measures in lifecycle cost terms, but when taking sustainable/renewable energy supply options into account, this priority and what you might do in reality if you are interested in making real savings, might change. Wattcraft, with expertise in sustainable energy supply, can help you work out what the appropriate balance will be and then support you in the delivery of the most attractive options.
Wattcraft is an engineering organisation, which means that technical rigour will be applied to your energy assessment and there will be a focus on what is practical and able to be delivered based on your resource constraints.
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For ESOS Phase 3, organisations must submit an Energy Action Plan by the revised deadline of 5 March 2025 (extended from 5 December 2024).
The Energy Action Plan should include:
Energy Data Analysis: Summarise findings from energy audits or compliance methods, identifying significant energy use areas (e.g., buildings, processes, transport).
Energy Saving Opportunities: List and prioritise measures that could reduce energy consumption and improve efficiency, focusing on cost-effectiveness.
Implementation Strategy: Include a timeline and responsibilities for implementing identified opportunities.
Progress Updates: Two progress updates are required:
First Update: Due by 5 March 2026.
Second Update: Due by 5 March 2027.
Organisations must ensure the action plan is reviewed by a Board-level Director and approved by a certified ESOS Lead Assessor. While implementation of identified measures is not mandatory, it is strongly encouraged to demonstrate progress in energy efficiency.
Records of all assessments and related documentation must be kept for compliance audits. Non-compliance may result in significant financial penalties.
Contact Us
Please contact us to find out how we can help you with meeting your ESOS obligations. We are based in Gloucestershire and can serve the whole country, according to specific requirements.
Email rupert.blackstone@wattcraft.com
Phone +44 (0)1453 706500
Alternatively please complete our form.