But what exactly does this scheme entail? Which businesses does it apply to? And what’s the difference between ESOS phase 1, phase 2 and phase 3? Read on as we provide all the answers…
Introduced in 2014, ESOS is a mandatory regulation for UK businesses of a certain size. Put simply, it aims to ensure businesses are reducing their energy output wherever possible.
That’s done with a mandatory initial assessment and ongoing reviews every four years. The assessment includes:
As touched upon above, ESOS assessments are required every four years for participating businesses. This is where the ESOS phases come into play. Rather than simply being four years since your most recent audit, ESOS has set compliance phases which companies must abide by.
ESOS phase 1 began in December 2015, running until December 2019. ESOS phase 2 begins in December 2019 until December 2023. Then ESOS phase 3 runs from December 2023 to December 2027.
Each ESOS phase comes with a qualification date. For ESOS phase 2, it was 31st December 2018, while the qualification date for ESOS phase 3 will be 31st December 2022. This is the date on which businesses must determine whether or not they are eligible.
ESOS applies to businesses which meet the ESOS definition of a ‘large undertaking’. In short, this means you meet either of the two following criteria:
It’s worth noting that the criteria for phase 2 were slightly different, as they were based on European currency. The annual turnover threshold was €50 million (£44,845,000), while the annual balance sheet threshold was €43 million (£38,566,700).
The deadline for ESOS phase 2 passed in December 2019, meaning eligible businesses should have already met their ESOS obligations. The next step is the qualification date for phase 3, on 31st December 2022.
If you’re looking for any assistance with ESOS or reducing your energy output in general, speak to Volta Compliance. We can provide a full energy audit, recording and assessing your consumption, along with a strategy to reduce your energy output including specific recommendations. We even install clean technologies like LED lighting, EV charging infrastructure, controls, and energy monitoring solutions in line with our electrical contracting services helping you come full circle on your energy obligations ESOS and SECR, fulfilling your strategy and implementing the strategy.
In short we will report, plan, implement, comply, help the environment, and save you money in the long run. Call us on 0113 397 1361 or request a quote online.