News

ESOS: UK government announces changes to strengthen scheme

           News

BEIS has published its response to a consultation on strengthening the Energy Savings Opportunity Scheme (ESOS). The main thrust has been to increase the scope of energy and carbon savings that can be identified.

Some of the changes are expected to be implemented in advance of the current Phase 3 compliance deadline (05 December 2023), and others in Phase 4 (05 December 2027).

What has changed?

The key changes to be aware of are:

  • ESOS qualification thresholds in line with those of SECR by Phase 4, meaning thousands of additional businesses will fall within scope of ESOS compliance
  • A standardised template for including compliance information in the ESOS report
  • A reduction of the 10% de minimis exemption to up to 5%
  • The addition of an energy intensity metric in ESOS reports
  • A requirement to share ESOS reports with subsidiaries
  • A requirement for ESOS reports to provide more information on next steps for implementing recommendations
  • A requirement for participants to set a target or action plan following the Phase 3 compliance deadline, on which they will be required to report against for Phase 4
  • The collection of additional data for compliance monitoring and enforcement
  • The removal of Display Energy Certificates (DECs) and Green Deal Assessments (GDAs) as compliance routes for ESOS in Phase 4.

The addition of a net zero element to ESOS audits will not become a requirement until Phase 4. However, BEIS is currently working with BSI on the production of a new net zero audit PAS standard, which will enable ESOS participants to implement the proposal in Phase 3 on a voluntary basis.

What do these changes mean for you?

Now, more than ever, it is crucial to secure a qualified ESOS lead assessor to guide your business through the evolving compliance process and to guarantee compliance ahead of the Phase 3 deadline.

Get ahead by being prepared and reap the rewards

Although the deadline for Phase 3 ESOS is December 2023, you can start collecting the 12 months’ energy data from 31 December 2021.

Lead assessors are in high demand, and particularly as you get closer to the deadline, so we recommend:

  • Securing your assessor now
  • Scheduling the phases of work to be undertaken
  • Allowing plenty of time to plan site visits
  • Ensuring appropriate systems and processes are in place for data collection and storage.

Reducing energy costs and emissions now

With energy prices at record highs and growing stakeholder demands surrounding ESG, getting ahead with ESOS Phase 3 and acting upon the recommendations could alleviate some of these pressures and get you started on your journey towards decarbonisation.

Data and cost efficiency through streamlining with other schemes

In addition, getting prepared means you can consider combining ESOS compliance with other mandatory and voluntary schemes (such as SECR, ISO 50,001 and SBTi) or indeed a net zero strategy, which will streamline processes and lead to cost savings.

Get in touch today to speak to an expert

Our compliance team are on hand to provide advice and support on ESOS compliance, please do get in touch:

Website: Online Form

Email: info@alfaenergygroup.com

Tel: +44 (0) 20 3994 5680


Alfa Energy Group

Alfa Energy Group is an international energy, water, and sustainability consultant partner with 200 employees over 4 international locations. For over 25 years, Alfa has been servicing its clients’ needs through energy and water management, sustainability, and compliance consulting, and an intuitive ecosystem of user-driven energy, water, and carbon management software platforms. With coveted awards, an international industry-wide recognition, and clever simple solutions, today Alfa is partnering with clients to establish and deliver pivotal net zero strategies. Through smart energy management, the expertise and diligence of its people, transparent processes, and data management, Alfa continues to lead through its recognised gold standard of service delivery.