Energy Savings Opportunity Scheme (ESOS)


ESOS is a scheme initiated by the government to help reduce energy consumption in larger businesses, it applies to all the UK. It is part of the UKs strategy to meet its commitments in the EU Energy Efficiency Directive (2012/27/EU).

What is ESOS? 

ESOS is used to make larger companies review their energy consumption, improve energy efficiency, and ultimately reduce their energy usage and carbon footprint. It has the potential to increase business profitability by identifying cost-effective savings which will improve energy efficiency. The scheme is estimated to have a £1.6 bn net benefits to the UK, with the majority of the saving being directly felt by businesses as a result of reduced energy use.

SP Wales supplies metering solutions and can help you to achieve your ESOS compliance.

Who does it apply to?

Broadly speaking, any company who either:

  • employs 250 or more people; or,
  • has an annual turnover in excess of 50 million Euro.

There are some specific nuances to qualification that are better covered here.


Organisations that do not carry out a compliant audit where required will be in breach of the Regulations and may be subject to one of the following notices:

  • A compliance notice;
  • An enforcement notice; or,
  • A penalty notice.

Compliance Period

Companies are required to be compliant in each of the compliance periods listed below.

Compliance PeriodQualification DateCompliance PeriodCompliance Date
131st Dec 201417th Jul 2014 to 5th Dec 20155th Dec 2015
231st Dec 20186th Dec 2015 to 5th Dec 20195th Dec 2019
331st Dec 20226th Dec 2019 to 5th Dec 20235th Dec 2023
431st Dec 20266th Dec 2023 to 5th Dec 20275th Dec 2027

ESOS Assessment

If you have ISO 50001 accreditation that covers all your energy use, then it counts as your ESOS assessment.  Otherwise you will need to undertake an ESOS Assessment, to achieve this you will need to do all of the following:

a.    measure your total energy consumption
b.    identify areas of significant energy consumption
c.    consider available routes to compliance
d.    ensure areas of significant energy consumption are covered by a route to compliance
e.    appoint a lead assessor (unless you have zero energy - see section 6)
f.    get one or more board level directors to review the findings of the assessment
g.    make a notification of ESOS compliance online.

A very brief summary of each step is laid out below, a complete guide is available here.

A)    Measure the total Energy Consumption

The energy consumed should include usage in all buildings, processes, and transport.  Energy consumed includes:

  • Combustible Fuels,
  • Heat, 
  • Renewable energy, 
  • Electricity; and,
  • Fuels used in transport.

Your energy consumption must be calculated over a reference period of 12 consecutive months and the data must be verifiable where reasonably practicable.

This is the area where SP Wales Ltd can help, with our range of metering solutions we can provide individual meters or systems that can help to collate much of the energy data.

B)    Identifying Areas of Significant Energy Consumption

You must identify assets and activities that amount to at least 90% of your total energy consumption. You will also need to identify energy saving opportunities, for example:

  • Implementing an energy reduction strategy using meters and monitoring tools
  • Implementing strategies to ensure vehicles & machinery operate more efficiently
  • Replace enterprise travel with video conferencing
  • Invest in energy reduction projects
  • Influence behavioural change

C)    Consider Available Routes to Compliance

You must choose one or more routes to compliance that cover all your areas of significant energy consumption.  You can demonstrate that you have made a compliant ESOS assessment using:

  • ISO 50001 certification 
  • Display Energy Certificates (DECs) 
  • Green Deal Assessments (GDAs) 
  • ESOS compliant energy audits.

D)    Consider Available Routes to Compliance

You must audit your areas of significant energy consumption which aren’t covered by one of the available routes to compliance described above.  You can also use previously undertaken energy audits to contribute to ESOS compliance provided that were not used in the previous compliance period.

E)    Appoint a Lead Assessor

The appointed lead assessor must be a member of an approved ESOS Lead Assessor Register.  Someone form the organisation would work together with the lead assessor to agree the approach your organisation is taking to its ESOS compliance.

The EA do not have standard templates, so as long as the ESOS assessment has been conducted and at least 90% of the total energy consumption is compliant via ESOS audits or an alternative route to compliance, and the data to evidence this work and its findings is recorded it will be sufficient.

F)    Director Sign Off

Having completed the ESOS Assessment a board level director will need to confirm that they: 

  • Have reviewed the recommendations of your organisation's ESOS assessment.
  • Are satisfied that the organisation is within the scope of the scheme.
  • Are satisfied that the organisation is compliant with the scheme. 
  • Are satisfied that the information provided in the organisation's notification is correct.

G)    Notification of ESOS Compliance

You will need to use the online notification system to notify the Environment Agency that you are ESOS compliant.  There is no charge for submitting your ESOS notification.

You must keep and ESOS evidence pack that includes the details and evidence that are relevant to your application.

If you have any questions regarding ESOS or energy measurement and monitoring, then feel free to get in touch with our friendly sales team.

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