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Energy Savings Opportunity Scheme (ESOS) Explained 

The Environmental Agency ESOS Newsletters


New ESOS News Letter Nr.07


The Energy Savings Opportunity Scheme (ESOS) is expected to help reduce business energy costs by a total of £1.6 billion by 2030. ESOS is a mandatory energy assessment and energy saving identification scheme for large undertakings and their corporate groups. Under the scheme, which applies throughout the UK, businesses will be required to look closely at their energy usage to identify cost-effective energy savings.

Around 10,000 large enterprises will be required to calculate their energy use from December 2015, under the ESOS scheme being rolled out by the Government that aims to reduce energy consumption and carbon emissions across industry.
The Energy Savings Opportunity Scheme (ESOS) demands all organisations outside the public sector with more than 250 employees undertake energy audits once every four years inline with the EU’s Energy Efficiency Directive.


The ESOS is a mandatory energy assessments and energy savings identification scheme for large undertakings in the UK. Compliance under this scheme must be implemented by 5th December 2015, however action is recommend ASAP to allow time to carry out all the discovery works, ESOS assessments and any further actions required to ensure compliancy. The ESOS should be viewed as an Opportunity, rather than an obligation or order.

Am I affected?

You are likely to be in the ESOS if, on the qualification date of 31st December 2014 you are:

1. An Undertaking which has 250 or more employees in the UK.

2. An Undertaking which has fewer than 250 employees, but has:
• An Annual turnover exceeding €50m (£38,937,777),
• and an annual balance sheet exceeding €43m (£33,486,489).

3. Part of a corporate group, which includes an undertaking that meets criteria 1 or 2 above.

What must you do?

ESOS regulations came into force on 26 June 2014.
By the 31 December 2014: You must assess your qualification status, or instruct an experienced external consultant.
Organizations falling into the scheme must complete their first energy audit by 5th December 2015.

Audits must be completed at a minimum of every four years from the date of the previous audit.


ESOS Timeline: –

ESOS is a mandatory energy assessments

A brief overview:

1. Measure total energy consumption across:

A. Buildings,

B. Transport- Freight and business travel in company and employees vehicles

C. Industrial activities.

2. Conduct energy audits to identify cost-effective energy efficiency recommendations.

3. Report compliance to the Environment Agency by 5th December 2015.
Before notification to the Environment Agency, the ESOS assessment must be conducted or reviewed by a lead assessor and reviewed by a board level director. The energy audits are a detailed recommendation of where and how to save energy, reduce carbon and save money. The ESOS assessments provide opportunities by reducing outgoings on energy bills and companies are more than likely to be more competitive in their market areas.

This will help UK to achieve significant CO2 emission reduction targets.
Regardless of the ESOS scheme, it is good business sense to undertake energy audits on a regular occasion. Substantial tones of carbon and energy costs are wasted year-on-year through inefficient boiler / air conditioning systems, poorly insulated heating systems and draughty, leaky and poorly un/insulated buildings, bad operational and behavioral practices in place, redundant building management systems / controls systems and power and lighting systems being left on. Even if you are not obliged to carry out the ESOS audits, it is recommended that you review your energy consumption and costs on a regularly basis.


What if we do not comply?

Failure to correctly comply with the scheme leads to fines of up to £50,000 and additional fine of £500 per day for a maximum of 80 days or until compliance has been demonstrated. Non-complying companies will also be named and shamed on the Environmental Agency .

Where can I find help?

If you think you may qualify for this scheme or you are not sure, please contact to discuss compliance in more detail. At LCEA Ltd we provide solutions on how the scheme works and how we can help you meet the requirements of the scheme, reduce energy consumption and save you money.



It could be both time and cost-effective to leave navigating this complex legislation to experienced specialists like us at LCEA Ltd.

Time is not on your side
It could take an in-house staff member between three to six months and up to a year to get to grips with ESOS, which is already in Phase 1 (three years already pasted) and only a couple of weeks to go until the compliance date 05th December 2015 kicks in with a £50,000 penalty for not complying.


Maximise cost savings

At LCEA Ltd we are knowledgeable and experienced consultants and we can take you on a journey with ESOS beyond simple compliance, maximising cost savings and adding value to the process, making your business more competitive. We are accredited and approved ESOS Leas Assessors.

Contact Us

Drop us an e-mail at or speak directly with Robert Corbyn MRICS Accredited CIBSE ESOS Lead Assessor on his mobile 07804 414170.

Use your staff resources wisely

Every moment spent on ESOS compliance is a distraction from your core business activities.

Contact us today and speak directly with our ESOS Lead Assessors on 0203 504 0135 or speak to Robert Corbyn directly on his mobile on 07804 414170 for a free consultation.

Related downloads

Current version of the Environmental Agency ESOS guide Version 3

Comply with ESOS: a guide to qualification, compliance and notification requirements Version 3.

LIT 10094

PDF, 885KB, 81 page


Enforcement and Sanctions Environmental Agency Guidance

Operational Instruction 1428_10, Version 3.

The regulations set out penalties for non-compliance but also allow the Environment Agency (EA) to waive or modify the enforcement action where appropriate. The EA are developing an enforcement approach to set out on how they intend to deal with breaches for the first compliance period. The expect to publish this in October 2015, as an extension to the current Enforcement and Sanctions Guidance attached below.

Environment Agency_Enforcement and Sanctions – Guidance Version 03 – LIT_5551

ESOS Press Releases

CRC – v – CCA – v – ESOS, All for one and one for?

Reforming the business energy efficiency tax landscape

At the Summer Budget 2015, the UK Government announced that it would undertake a review of business energy tax policy to improve and simplify the landscape.

The HM Treasury has launched a consultation seeking views and evidence on proposals to reform the business energy efficiency tax landscape and associated regulations, including the CRC Energy Efficiency Scheme and Climate Change Agreements, and energy and carbon reporting including links to the Energy Savings Opportunity Scheme (ESOS).

The review may lead to future changes in the policy landscape but does not affect the present requirements of the schemes. Participants therefore need to continue to meet their obligations as normal until any changes are introduced.


The consultation ran up until  11:45 a.m on 9th November 2015.

Ref: 1853PDF, 820KB, 30 pages

Published on the 28th September 2015.

You can download a copy at Reforming the business energy efficiency tax landscape_CRC-CCA-ESOS_PU1853_business_energy – 28th September 2015


Your EA letter was in the post did you read it?

Environment Agency send ESOS Reminder Letter (18 May 2015) (18 May 2015)   Environment Agency send ESOS Reminder Letter (18 May 2015)’.


HM Government (DECC) Energy Savings Opportunity Scheme Impact Assessment

Uk Government’s final Stage Impact Assessment to accompany the Government Response to the ESOS consultation.


Superseded guides below…

Previous Environmental Agency ESOS Guides below…


Ref: LIT 10094

PDF, 1.01MB, 78 pages

Initial publication by the Environment Agency. Uses some text from Department of Energy and Climate Change’s (DECC) guidance document – Guide to ESOS, Version 1.1, September 2014 and supersedes the DECC guidance illustrated below.


The Department of Energy & Climate Change (DECC) Energy Saving Opportunity Scheme (ESOS) guide has been superseded by the Environment Agency’s ESOS compliance guidance version 01 which was published on the 17 February 2015. In the event of any conflict or ambiguity between the Guides, please follow the Environment Agency’s compliance guidance.

The EA guide gives a comprehensive overview of ESOS and how to comply. It details:

  • which organisations qualify for this mandatory scheme
  • what qualifying organisations need to do to comply
  • how organisations should notify the Environment Agency that they are compliant
  • when the compliance deadline is what the penalties are for not complying

The DECC Guide has been superseded by Version 3 attached:- ‘Complying-with-the-Energy-Savings-Opportunity-Scheme-Version-03-by-the-Environment-Agency-ESOS-Lead-Assessors’

HM Government (DECC) Energy Savings Opportunity Scheme Guide

The UK Government published it’s revised response (Version 1.1) to the public consultation on the Energy Savings Opportunity Scheme.

(Note, now superseded by the EA ESOS Compliance Guide)


DECC Provides ESOS audit examples in their updated guide…

UK Government (DECC) provide ESOS Audit examples to consider when planning and undertaking energy audits under the Energy Savings Opportunity Scheme (ESOS)…

The guide has been developed in response to business requests for more practical examples of how they could approach ESOS audits.

The guide is primarily intended for ESOS participants undertaking energy audits, and particularly those who have less experience of energy auditing. However, it may also be useful for anyone involved in planning or carrying out audits, whether undertaken in-house or involving a third party.

The approaches set out in this guide are intended to help you use ESOS audits to identify the most cost effective savings for your organisation. This includes selecting the right sites to visit in an audit, making the best use of existing


PDF, 963KB, 44 pages

Department of Energy and Climate Change (DECC) 20th March 2015.

Department of Energy Climate Change – Approaches to ESOS Audits

PDF 901KB, 42 pages, 20th March 2015 


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