Energy Savings Opportunity Scheme

The Energy Savings Opportunity Scheme (ESOS) has been established to implement Article 8 (4-6) of the EU Energy Efficiency Directive. The scheme is administered by the Environment Agency and is mandatory for all organisations (private, public and voluntary sector) that meet the following qualification criteria on 31st December 2014:

  • any UK company that either:

    • employs 250 or more people, or
    • has an annual turnover in excess of £38,937,777, and an annual balance sheet total in excess of £33,486,489
  • an overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK)

Organisations must also take part in ESOS if their undertaking is part of a corporate group which includes another UK establishment which meets the above criteria.

Organisations that meet the stated criteria must carry out assessments every 4 years to audit the energy used by their buildings, industrial processes and transport and identify cost-effective energy saving measures and then notify the Environment Agency by a set deadline that they have done so. The first notification of compliance should have been submitted by 5 December 2015. The process will then have to be repeated at the end of every 4-year compliance period, ending on 5 December 2019, 2023 and so on.

There is an extensive section on ESOS, including a downloadable compliance guide and details of penalties for non-compliance, on the government's website.

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