Colin Lillicrap

Energy Saving Opportunities Scheme (ESOS)

Changes to phase three of ESOS

Following the government consultation on strengthening ESOS in 2021, the following changes are to be introduced for phase three.

The addition of a net zero element to ESOS audits will not become a requirement until Phase 4. However, BEIS is currently working with BSI on the production of a new net zero audit PAS standard, which will enable ESOS participants to implement the proposal in Phase 3 on a voluntary basis.

Qualifying criteria

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and energy saving identification scheme for large undertakings (and their corporate groups) that meet the following criteria.

Compliance date

The compliance period for ESOS phase 3 is 6 December 2019 to 5 December 2023. Within this the compliance date, the date on which the enterprise must meet the qualifying criteria set out above, is 31 December 2022. The calculation of the Total Energy Consumption (TEC) over a 12 month period must include 31 December 2022. The compliance deadline for reporting to the Environment Agency is 5 December 2023. Energy audits covering any 12 month period within the compliance period can be used to comply with ESOS.

Alignment with Streamline Energy and Carbon Reporting (SECR)

While BEIS have yet to issue detailed guidance, it is understood that ESOS will be aligned with SECR. This should mean the qualifying criteria are the same for both schemes. It is also expected that companies will be required to report progress against targets set in ESOS in their annual reports through the Director’s narrative report required to comply with SECR.

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