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ESOS Phase 4 – What You Need to Know

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esos phase 4 – what you need to know

The Energy Savings Opportunity Scheme (ESOS) has been extended for another four years. Following Phases 1-3, it’s no surprise that the next part of the scheme will be known as ESOS Phase 4. Read on as we explain everything you need to know and whether your business is eligible.

What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) is a government directive that began in 2014. It is mandatory for certain businesses, to ensure they are making all efforts to increase their energy efficiency and reduce carbon emissions.

The Environment Agency is the scheme’s UK administrator and requires businesses to record and report on their energy consumption. This is split into Phases 1-4, with 1 and 2 having already having been completed and Phase 3 coming to an end in 2023.

Phase 3 began on 7th December 2019, with the 31st December 2022 being the last day to qualify. Originally, December 2023 was the final date for compliance, but the scheme has now been extended and Phase 4 added.

ESOS Phase 4

The criteria for Phase 4 is similar to Phase 3. Businesses must be based in the UK, have more than 250 employees or have an annual turnover of £44 million. The Phase 4 compliance period will begin on 6th December 2023, with the qualification date of 31st December 2026 and final compliance date on 5th December 2027.

A larger focus will be on reducing carbon emissions and the strategies needed. The ESOS assessor you are using must have more experience that the average employee in carrying out energy audits. Also, ensure that you employ someone who has knowledge on carbon reduction.

Some changes that come with ESOS Phase 4 include:

  • A minimum threshold of audited buildings and energy consumption will be created.
  • Information on carbon reduction will be available publicly.
  • ESOS’s web portal will allow you to report progress annually, as well as record why goals haven’t been reached.
  • You can’t rely on Green Deal Assessments and Display Energy Certificates (DEC) to prove your business is being compliant.
  • Emphasis will be made that if your business is part of a corporate group and eligible, then this extends to the entire group automatically.

What your business needs to do

To comply with ESOS Phase 4, you must:

  • Discover if you’re eligible. You may be by 2026 so make sure you factor that in, even if you aren’t eligible at the moment. If you don’t, you could risk being fined up to £50,000.
  • Audit and record your total energy consumption.
  • Audit and record your significant energy consumption (figures with huge room for improvement).
  • Ensure that your report is reviewed by lead assessors and approved by directors before being signed off.
  • Inform the environment agency that you have completed ESOS.

How Volta Compliance can help your business

As a business, you are responsible for reporting your energy usage through ESOS. Volta Compliance has expertise in assisting customers with every element of assessment. Our dedicated team of electricians are on hand to carry out your energy audits and will even create a helpful strategy to ensure recommendations are implemented.

To get the ball rolling, call our friendly team today 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.