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Energy Savings Opportunity Scheme (ESOS)

Turn ESOS compliance into a winning opportunity for your business. Whether it's implementing energy-saving recommendations, avoiding penalties, getting ahead on Phase 4, or advancing your sustainability goals. Trident is here to guide you through the process.

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Trident ESOS overview
ESOS meaning

What is ESOS, and why it’s important

The Energy Savings Opportunity Scheme (ESOS) supports UK businesses in improving energy efficiency, cutting costs, and reducing carbon emissions. It’s a critical step towards achieving the UK’s net-zero goals.

Launched in 2014, the scheme requires eligible businesses to conduct an energy audit every four years. These audits identify practical ways to save energy and reduce waste, helping businesses operate more sustainably while maintaining performance.

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Energy Savings Opportunity Scheme qualification criteria

Who needs to comply with ESOS?

Over 12,000 companies must comply with ESOS. If your business qualifies, you must conduct regular energy audits and identify ways to save energy.

To qualify, your organisation must meet at least one of these criteria:

1. Employee count: 250 or more employees

2. Financial threshold:
  • Annual turnover exceeding £44 million
  • Balance sheet total over £38 million

These rules apply to companies, partnerships, trusts, and other corporate bodies. Most public sector bodies are exempt. However, businesses in mixed ownership or part of a larger corporate group must assess eligibility at a group level.

If your entire organisation is ISO 50001 certified, congratulations—you’re already compliant! Just notify the Environment Agency.

Compliance timeline & key steps

Key milestones for ESOS compliance

To simplify ESOS compliance, here's a quick timeline and what you need to know about planning ahead. 

 

Stages to be aware of:

  • Qualification date: Determine eligibility based on the previous year’s data.
  • Data collection: Gather 12 months of energy usage information.
  • Energy audit: Conduct an audit to identify savings opportunities.
  • Compliance notification: Submit findings by the 5th December deadline.
  • Implementation (optional): Act on the recommendations to maximise benefits.
  • Ongoing monitoring: Keep records handy and prep for future phases.

 

Important ESOS UK dates

6th August 2024
Phase 3 deadline

5th December 2024
Phase 3 action plan deadline

5th March 2025

Action Plan submission extension

5th December 2025
Phase 4 progress update

5th December 2026
Phase 4 subsequent progress update

5th December 2027
Final ESOS Phase 4 Submission

Trident Early Engagement For ESOS Phase 4
Prep early for Phase 4 success

Early engagement for ESOS Phase 4

Getting ahead on Phase 4 ensures you maximise the benefits of energy efficiency improvements. Starting early helps you secure a Lead Assessor, skip the last-minute rush, and prepare for success.

Preparing early helps you go through audit findings and set up energy-saving steps at your pace and within your budget. This proactive approach reduces stress, spreads out costs, and maximises energy efficiency gains over time.

Early planning also means you can work closely with energy consultants, building a collaborative partnership that drives better results. If Phase 3 felt overwhelming, Phase 4 is an opportunity to plan smarter. Make it a more organised, rewarding process that delivers lasting energy savings, cost reductions, and sustainability benefits.

Start Phase 4 today

ESOS requirements to comply with

An ESOS audit examines your energy use and identifies clear steps to improve efficiency and reduce costs. Here’s what it typically includes:

 

 Data collection & profiling: Collect a year’s worth of energy data across your operations to spot usage trends.

 Site surveys: Visiting the facilities allows for a close examination of energy use, data validation, and identification of waste.

 Energy management review: Looking at current energy policies, practices, and habits that impact consumption.

 Energy use analysis: Studying patterns, identifying peak usage times, and spotting areas of waste.

 Energy-saving opportunities: Suggest cost-effective measures like upgrading equipment, improving insulation, or optimising processes with estimated energy savings and payback times.

 Transport assessment: Reviewing vehicle energy use and recommending efficiencies, like route optimisation or shifting to electric vehicles.

 Reporting findings: Creating a report with prioritised energy-saving recommendations, signed off by a Lead Assessor.

 Implementation guidance: Offering steps to start saving energy (though implementing these steps isn’t mandatory under the compliance programme).

Download our ESOS checklist

ESOS Lead Assessor

A Lead Assessor is essential to the ESOS process. They thoroughly review your energy use, identify cost-saving opportunities, and oversee the compliance report submitted to the regulator. Engaging a qualified Lead Assessor early on helps you maximise audit value and stay compliant.

ESOS Action Plan

The ESOS action plan takes your audit results further, helping you prioritise and act on energy-saving recommendations. It outlines timelines, resources, roles, and responsibilities, providing a clear framework for implementing these energy measures.  Created post-audit, the Action Plan supports compliance and sets your organisation up for ongoing savings and sustainability. The Environment Agency may review the compliance package in future phases to track energy improvement progress.

Trident ESOS action plan
Phase 3 & 4

Start crafting your ESOS action plan

Ready to begin your ESOS action plan? Start, customise your plan, and track your progress by following these steps.

Getting started

After submitting your compliance notification for the third compliance date, it’s time to map out your action plan. This should cover:

  • Your energy goals: Outline the steps you plan to take to reduce energy consumption.
  • Timing: Specify when you plan to implement these measures.
  • ESOS recommendations: Identify whether your audit recommended each action.
  • Expected savings: Estimate the energy savings you aim to achieve over the four years of the action plan.
  • Savings calculations: Describe how you arrived at these savings estimates.

Submit your action plan by 5th December 2024, with approval from a board-level director or senior equivalent.

Good news: The Environment Agency has extended the deadline for Action Plan submissions to 5th March 2025.

Here’s what to include in your ESOS plan

Benefits of complying with ESOS

Learn what your business will gain when complying with the ESOS scheme:

 

Save on energy costs

Pinpoint and eliminate energy waste.

Energy efficiency

Gain a clear understanding of energy use and reduce consumption.

Sustainability goals

Reduce your carbon footprint and align with the UK’s net-zero ambitions.

Reputation boosts

Demonstrate environmental responsibility to clients, stakeholders, and employees.

Competitive edge

Lower operational costs while appealing to eco-conscious customers.

Long-term strategy

Turn audits into action plans for ongoing efficiency improvements.

Make the most of your ESOS compliance

Turn your ESOS compliance into a real opportunity. The real value comes from acting upon your audit recommendations. By implementing the identified opportunities, you’ll see direct financial savings, smarter resource use, and improved operational efficiency.

Going beyond compliance helps build trust with stakeholders, meet CSR targets, and support national sustainability goals. Plus, it sets you up for ongoing energy management success, keeping your business efficient for years.

Implement your recommendations

Key changes in ESOS: What’s new in Phase 4

Phase 4 introduces new requirements to encourage genuine improvements in energy efficiency. Here’s what’s changed:

  1. Mandatory Action Plans: Businesses must now create and report on energy-saving plans annually.
  2. Enhanced reporting: More detailed reporting and a closer alignment with net-zero targets mean ESOS is evolving beyond compliance.

The new updates make ESOS a practical tool for saving energy and reducing emissions. This change could save the UK £1.12 billion in energy costs over 14 years.

Trident- ESOS supporting your net zero journey
Reducing carbon emissions

How ESOS supports your net zero journey

Your first step to net zero

ESOS is more than just a compliance requirement; it’s a meaningful step toward achieving net zero. Through its structured audits, the scheme helps you spot real, actionable energy-saving opportunities. That means tangible improvements in your carbon footprint, bringing your organisation closer to its carbon reduction targets.

A holistic approach to carbon reduction

With ESOS, you see the full picture of your energy usage. Giving a chance to assess how and where you're using energy and to find ways to cut down. Implementing the recommendations from your audit is a powerful move towards reducing emissions in line with your sustainability targets.

Aligning compliance with carbon goals

ESOS fits seamlessly into your carbon strategy, ensuring compliance and long-term growth. It provides insights that save money, reduce emissions, and keep you on target with regulations and climate goals.

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Meet ESOS deadlines with confidence

ESOS regulations & penalties

Your environmental regulator is responsible for compliance and enforcement activities. It may issue civil sanctions, including financial penalties if an organisation does not meet the scheme’s obligations.

Understanding penalties for non-compliance with ESOS

The penalties for non-compliance will be financial, and therefore, compliance is key. Here’s a snapshot of potential penalties:

  • Failure to audit: Not completing the required audit or appointing a Lead Assessor can result in fines up to £50,000, plus £500 per day.
  • Inadequate records: Failing to keep an evidence pack can lead to fines of up to £5,000.
  • Reputational risk: The Environment Agency may publicly list non-compliant organisations, impacting your brand image.

To avoid these penalties, meet all ESOS requirements, including audits, notifications, and record-keeping. Staying compliant prevents fines and positions your organisation to benefit from energy-saving opportunities.

ESOS Phase 3

Missed the Phase 3 deadline? Here's what you need to know

If your business didn’t complete ESOS Phase 3, there’s no need to worry—solutions are available to help you move forward. While the deadline has passed, starting your compliance journey now is essential to avoid potential or any extra fines and get back on track. Acting sooner can help minimise risks and ensure you’re prepared for future phases.

We’re here to guide you through the steps to compliance—without pressure, just practical advice to help you make informed decisions moving forward. Let’s tackle this together and keep your organisation’s energy goals on course.

Speak to our ESOS experts

Value we deliver

In-house expertise

We were one of the first UK consultants to offer ESOS Lead Assessors, helping organisations meet requirements quickly.

Guaranteed success rates

In Phase 2, 63% of evidence packs reviewed by The Environment Agency were only partially compliant and required changes. We are proud to declare that 100% of our customers achieved compliance through our ESOS guidance.

Beyond compliance

We can help you implement sustainable solutions that reduce energy costs and optimise energy efficiency.

Start saving now

Act today so you can reap the benefits sooner from your energy-saving opportunities. With energy prices high this makes good commercial sense as well as good for our environment!

What our ESOS clients think

When faced with the compliance requirements, our business did not hesitate to contract the services of Trident yet again to steer us through the requirements of both Phase 1 compliance and subsequently Phase 2.

M Hegarty - Greenergy Biofuels Ltd
Trident Utilities ESOS compliance checklist
Your simple guide to energy-saving compliance

Download your ESOS checklist

We’ve covered every essential step so that you can feel confident and prepared. Make compliance simple and get a clear path to energy savings right here.

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Book a Call with our ESOS experts

Let’s discuss your ESOS requirements. Our experts are here to guide you through each step and help you uncover practical, cost-saving energy solutions. Start your journey now with the dedicated support you deserve.

ESOS FAQs

What actions can businesses take to remain compliant with Phase 3 after missing the deadline?

Missing the deadline is not uncommon, and we’re here to help you move forward confidently. Start the compliance process now to minimise penalties and prepare for the next phase.

Contact us today

Why was ESOS created, and what does it mean for UK businesses today?

ESOS helps UK businesses reduce energy waste. For you, it means regular audits to uncover energy savings and cut costs—all while supporting sustainability goals.

Where can I find step-by-step guidance for our company’s ESOS compliance?

The Environment Agency provides guidelines, but we offer tailored support to guide you step-by-step and take the stress out of the process.

Download our simple guide to ESOS compliance

Can ESOS help us save on energy costs and support our sustainability goals?

Absolutely. ESOS does more than ensure compliance. It highlights energy-saving opportunities that reduce costs and cut emissions.

How does ESOS support the UK’s net-zero targets, and how can we contribute?

ESOS drives reduced energy use, which helps lower the UK’s carbon footprint. By acting on your audit recommendations, you’re playing a part in the UK’s journey to net zero.

What are the most important changes in ESOS Phase 4, and how do they affect us?

Phase 4 introduces mandatory action plans and transparency requirements, making ESOS a practical tool for real energy savings. Moving beyond compliance to achieve lasting impact.

Read the full article on what you need to know about ESOS Phase 4 here

What steps can we take to ensure smooth ESOS compliance for our organisation?

Start by tracking your energy data, appointing a Lead Assessor, and keeping records well-organised. Simple prep steps can make compliance a lot easier.

How does an ESOS Action Plan help us turn audit findings into real savings?

An action plan breaks your audit findings into actionable steps, helping you save energy, money, and the planet.

Click here to read about the differences between the action plan and the energy audit

How can an ESOS Lead Assessor add value to our energy-saving efforts?

A Lead Assessor ensures your audit’s accuracy, helps you identify effective savings, and provides guidance through compliance.

Where to find the latest news and updates on ESOS compliance?

For updates, check the Environment Agency’s website or industry news. Or let us keep you informed—we stay on top of ESOS developments to support you every step of the way.

How do we know if our company qualifies for ESOS compliance requirements?

If you employ 250+ people or have an annual turnover over £44 million with a balance sheet above £38 million, you’re likely in. We can confirm specifics if you’re unsure.

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