ESOS & SECR Compliance

ESOS & SECR Compliance

What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) is an energy evaluation system for large UK enterprises. It is regulated by The Environment Agency and as of 2014, became compulsory for businesses that meet certain criteria.

ESOS identifies energy-saving opportunities to ensure your business is compliant with current energy regulations.

It is recommended that your enterprise undertakes an ESOS evaluation at least every 4 years.

UK ESOS Deadline
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Does Your Organisation Qualify For ESOS?

ESOS is usually applied to large businesses, not-for-profit organisations or corporate groups that include another UK undertaking. Your organisation qualifies for ESOS if you meet one or both of the following criteria:

  • If you have 250 or more employees
  • Have a turnover of more than 50 million euro annually (£44,845,000) and an annual balance sheet total of more than 43 million euro (£38,566,700)

If you meet the criteria above, you will have qualified for Phase 2 (second compliance period) of ESOS as of 31 December 2018. This means that, if you are not yet ESOS compliant, you have until 5th December 2019 to declare your ESOS evaluation to the Environment Agency.

Complying with the Energy Savings Opportunity Scheme (ESOS)

Failure to notify – Regulation 43

  • A fixed penalty of up to £5,000
  • An additional £500 for each working day starting on the day after service of the penalty notice until the notification is completed, subject to a maximum of 80 days
  • Publication

Failure to maintain records – Regulation 44

  • A fixed penalty of up to £5,000
  • The cost to the compliance body for undertaking sufficient auditing activity to confirm that an organisation has complied with ESOS
  • Publication
  • The penalty notice may specify steps to remedy the breach.

Failure to undertake an energy audit – Regulation 45

  • A fixed penalty of up to £50,000
  • An additional £500 for each working day starting on the day after service of the compliance notice, until the breach is remedied, subject to a maximum of 80 days
  • Publication
  • The penalty notice may specify a requirement to undertake an ESOS Assessment.

Failure to comply with a compliance notice, an enforcement notice or a penalty notice – Regulation 46

  • A fixed penalty of up to £5,000
  • An additional £500 for each working day starting on the day after service of the penalty notice, until the breach is remedied, subject to a maximum of 80 days
  • Publication

False or misleading statement – Regulation 47

• A fixed penalty of up to £50,000 • Publication

If you’re subject to the publication penalty, the regulator will publish details on their webpages of:

  • the person on whom the penalty was imposed
  • the legal requirement that was not complied with
  • the amount of any financial penalty imposed 

SECR Compliance

What is SECR?

Streamlined Energy and Carbon Reporting (SECR) was introduced in April 2019. It requires large companies in the UK to include an energy efficiency evaluation in their annual director’s report for the financial year. The report must contain information on energy consumption, carbon emissions as well as methodology surrounding the report.

Does Your Organisation Qualify For SECR?

SECR generally applies to large UK companies.  If your UK company is quoted, large and unquoted or an LLP, it must also meet at least 2 of the following criteria:

  • You have more than 250 employees
  • Your annual revenue exceeds £36 million
  • Your balance sheet exceeds £18 million

Our ESOS/SECR Solutions

If you are unsure of your legal obligations, contact us on the form below.

We offer a fully managed solution including:

  • Free initial consultation
  • A bespoke document outlining your legal obligations
  • Deployment of a cloud-based solution used to process and display energy data
  • Issue of the report
  • Third Party Verification
  • Support Services

Each case is individually processed to provide a bespoke solution. We report on your individual energy consumption and identifies areas to improve your carbon footprint, save money and reduce your tax bill.

Energy is a taxable commodity. Recent trends report an increase over the last 2 financial years – current indications suggest it will increase again during the next financial year.

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