ESOS Phase 3 June Update: Compliance Deadline Extended

Thu 06/22/2023 - 14:29

Following consultation by the Department of Energy Security and Net Zero (formerly BEIS), the Environment Agency has announced the introduction of some new requirements as part of ESOS Phase 3. These changes will affect all current ESOS applications as well as new applications.

How do these changes affect the submission deadline?

To ensure these are properly carried out, the 5 December 2023 notification of compliance deadline has now been moved to 5 June 2024. The qualification thresholds and date remain unchanged.

The main additional information to be included for Phase 3 is:

Requirement for a summary template to include compliance information in the ESOS report.
The Total Energy Consumption (TEC) in kWh for Phases 1 and 2 must be shown.
Total estimated energy savings in kWh from energy savings opportunities identified in the ESOS report or alternative compliance method for each of Phases 1 and 2 (broken down by use category (buildings, transport or industrial process).
Energy Intensity Ratio - in terms of kWh/m2 for buildings, kWh/unit output (kWh/tonne or kWh/litre if more relevant) for industry and kWh/miles travelled for transport.
A change to the de minimis exemption so that participants’ Significant Energy Consumption covers at least 95% of their Total Energy Consumption (as compared to 90% in Phase 2).
Signpost where buildings covered by the report are also covered by the Minimum Energy Efficiency Standards (MEES) for non-domestic buildings and whether this is relevant to the recommendations in the report (for example where there may be a requirement on landlords to carry out work that would affect a recommendation).
Requirement for participants to set a target or action plan to provide more information on next steps for implementing recommendations, following the Phase 3 compliance deadline, on which they will be required to report against annually. The action plan does not need to be completed until after the compliance deadline and is expected to be required by December 2024.
Requirement to share ESOS reports with subsidiaries.

Final guidance will be published once the new ESOS regulations have been laid in Parliament. This will happen after the Energy Bill, which contains the regulation making power, has been passed by Parliament. Unfortunately we do not know when this will be. Once further details are released regarding what the action plan entails, such as how / when / where this needs to be reported, we will send out a further update.

SOCOTEC is able to help your organisation achieve compliance. We can offer ESOS Lead Assessor consultation and help you through the whole process.