ESOS Audit Services - Compliant Solutions for ESOS Phase 3
ESOS audits to guide you through the compliance process. Create a plan that aligns with ESOS phase 3.
Who qualifies for ESOS and how do I comply?
ESOS phase 3 applies to all large undertakings in the UK (businesses who employ more than 250 employees or who have an annual turnover of more than £44m and an annual balance sheet total in excess of £38 million). Organisations that qualify for ESOS must carry out energy assessments every four years, which audit their energy usage and identify cost-effective energy saving measures.
If you qualify for ESOS and your organisation is fully covered by ISO 50001 accreditation via a certified body, you do not need to carry out an energy assessment. All that is required is to notify the Environment Agency that you are compliant with ESOS.
However, if you do not have an ISO 50001 energy management system or it only covers part of your energy use, you will need to carry out an ESOS assessment. This will comprise the following steps:
Measuring total energy consumption and identifying areas of significant energy consumption
Ensuring areas of significant energy consumption are audited and compliant energy audit reports are produced
Appointing an accredited ESOS lead assessor to carry out, oversee and sign off the assessments, including board level director review and sign off.
Notify the relevant scheme regulator of compliance prior to the Phase 3 deadline (5 December 2023).
The Energy Savings Opportunity Scheme (ESOS) is a mandatory requirement and assessment scheme which encourages UK companies to measure and report on their energy use and efficiency, as well as identify opportunities to save energy. ESOS will consider an organisation’s entire energy usage across building/s, transport, industrial and commercial processes.
For organisations whose registered office is in England, ESOS compliance is regulated by the Environment Agency, which serves as the scheme administrator. Natural Resources Wales, Northern Ireland Environment Agency and Scottish Environment Protection Agency serve as the administrators for each of the respective countries in the UK.
When did ESOS start?
Having set out to reduce energy consumption by 20% by 2020, the UK government first introduced the ESOS scheme in 2014. ESOS was originally implemented in order to support businesses in overcoming information barriers that prevent them from investing in energy efficient measures. This is why organisations eligible for ESOS are required to carry out an energy audit every four years in line with each new phase.
ESOS Phase 3
How is ESOS phase 3 different to ESOS phase 2?
The “de minimis” threshold has been reduced from 10% to 5%. This may mean that additional parts of your consumption may now need to be audited. As an example, we had some clients where transport usage was above 5% but less than 10% in Phase 2, so their transport did not require a detailed audit. Whereas now they would be required to do a full transport audit.
Each Phase 3 audit must now include an energy intensity metric to show participants how they are performing. The metrics will be kWh/m² for buildings, kWh/unit output for industry and kWh/mile travelled for transport.
The government’s ESOS scheme is now in phase 3. Phases run every four years, with the deadline for ESOS phase 2 compliance having passed on 5 December 2019.
All eligible UK businesses have until 5 December 2023 to comply with ESOS phase 3. The Environment Agency must be notified by a set deadline to ensure that the organisation has complied with their ESOS obligations, which is included below:
The “de minimis” threshold has been reduced from 10% to 5%. This may mean that additional parts of your consumption may now need to be audited. As an example, we had some clients where transport usage was above 5% but less than 10% in Phase 2, so their transport did not require a detailed audit. Whereas now they would be required to do a full transport audit.
Each Phase 3 audit must now include an energy intensity metric to show participants how they are performing. The metrics will be kWh/m² for buildings, kWh/unit output for industry and kWh/mile travelled for transport.
The government’s ESOS scheme is now in phase 3. Phases run every four years, with the deadline for ESOS phase 2 compliance having passed on 5 December 2019.
All eligible UK businesses have until 5 December 2023 to comply with ESOS phase 3. The Environment Agency must be notified by a set deadline to ensure that the organisation has complied with their ESOS obligations, which is included below:
Key dates for ESOS phase 3:
ESOS phase 3 runs from 6 December 2019 until 5 December 2023
Qualification date – 31 December 2022 (when a company must assess whether they are obligated)
Compliance date – 5 December 2023 (by which date an organisation must be compliant).
Prepare for ESOS Phase 3
Read our ESOS Phase 3 Fact Sheet
The submission deadline for ESOS phase 3 is December 5 2023. Although this date seems like it’s a long time away, now is the ideal time to start preparing.
Energy efficiency involves the use of less energy to perform an action. Being energy efficient allows businesses to reduce their carbon footprint and become more environmentally friendly, as well as reducing the amount of money spent on energy. Becoming more energy efficient does not necessarily mean replacing old equipment with new units. Introducing occupancy controls or a Building Management System may be a cheaper way to drive efficiency as certain equipment can be retrofitted with energy saving controls, such as Air Handling Units, boilers, inverter motors and drives.
How can SOCOTEC help?
With a wealth of experience in energy efficiency, SOCOTEC has a strong track record in delivering carbon consultancy, energy management, audits and ESOS assessments. Our lead assessors can deliver, oversee and approve your business’ audits to ensure you meet compliance with confidence.
As well as developing a compliance plan which fully conforms with ESOS requirements, we will identify appropriate milestones to ensure you meet compliance by 5 December 2023. We also offer an ESOS lead assessor consultation to identify the most appropriate compliance strategy for your business.
Want to find out more on how SOCOTEC can support your organisation with ESOS compliance? Contact us
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