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ESOS Compliance Guidance – Everything You Need to Know

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esos compliance guidance – everything you need to know

As a business, it’s only natural to seek out ESOS compliance guidance. Above all else, you’ll want to eliminate the chance of disruption and avoid penalties for non-compliance. So how does it work? Who does it apply to? And how can you make sure you’re compliant?

Read on for all the ESOS compliance guidance your business needs.

What is ESOS?

Short for the Energy Saving Opportunity Scheme, ESOS was introduced in 2014 for ‘large undertakings’ in the UK, based on the EU’s Energy Efficiency Directive. Broadly speaking, it requires businesses to assess, record and report on their energy consumption every four years.

The most important factor of ESOS compliance guidance is who it affects. According to the government definition, a large undertaking is any organisation that either:

  • Employs 250 or more people
  • Has an annual turnover exceeding £44.1 million and a balance sheet exceeding £37.9 million

Guidance for ESOS compliance

ESOS has been split into phases, which determine when businesses should check their eligibility and carry out assessments. Phase 1 ran from December 2015 to 2019, while phase 2 began in December 2019 and ends in December 2023.

Most importantly, the deadlines for these two phases came at the start of the four-year window. Eligible businesses should have met their phase 2 obligations by December 2019, meaning the next date for your diary is 31st December 2022 – the qualification date for phase 3 of ESOS.

It’s worth mentioning that fines of up to £500 per day or £50,000 overall can be implemented for companies that fail to meet their requirements. The Environment Agency has already put some of those fines into action, with a total of over £150,000 in fines for 15 businesses in 2018.

What do I need to do?

If your business meets the definition of a ‘large undertaking’ above, or you expect it to on 31st December 2022, then you’ll need to carry out a full ESOS assessment for your energy consumption. You must:

  • Appoint a lead assessor who is a member of an ESOS-approved register, internally or externally
  • Calculate energy consumption used during activities carried out by your business – or used by assets held by your company
  • Identify any areas of significant energy consumption, accounting for 90% of your total energy consumption or more
  • Notify the Environment Agency of your assessment in compliance with ESOS regulations
  • Maintain accessible records of all assessments and reports to prove compliance

Expert ESOS compliance guidance

When you’ve got other things to focus on, ESOS compliance can seem overwhelming and unnecessary. But it’s important to have the best guidance on your side to avoid penalties and disruption for your business.

At Volta Compliance, we provide specialist ESOS services to businesses in and around Leeds. By assessing and reporting on your energy, our ESOS-approved contractors can keep you compliant and save you money.

To find out more, simply contact our team on 0113 397 1361 or email [email protected].

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Richard Carr Volta Compliance
Richard Carr
Managing Director
Richard is the Director of Volta Compliance. He is a fully qualified approved electrician graded with the JIB. Richard has over 20 years electrical experience working on commercial and industrial installations.