Compliance & Reporting

Energy Saving Opportunity Scheme (ESOS)

What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and energy-saving identification program required by UK law for large businesses. ESOS is designed to enhance energy efficiency and lower carbon emissions by helping organisations identify cost-saving opportunities, comply with environmental regulations, and reduce energy bills through detailed energy audits.

Energy Savings Opportunity Scheme (ESOS) Requirements

01

Employee Count

The ESOS regulation is mandatory for large UK businesses that satisfy the personnel requirement of having 250 or more employees.

02

Turnover and Balance Sheet

Those whose annual turnover is more than £44 million and annual balance sheet totals more than £38 million.

How can True Solutions help?

It is necessary to appoint a Lead Assessor to supervise and/or conduct your organisation’s energy audits and ESOS assessment. True Solutions lead assessors can provide end-to-end support through the ESOS compliance, such as

Energy Assessment Calculations

Accurate calculation of your total energy consumption across buildings, transport and industrial activities to identify ESOS-in-scope energy use and ensure compliance with ESOS requirements.

Energy Audits

Comprehensive energy audits carried out in line with ESOS guidance, providing detailed insight into current energy performance and improvement opportunities.

ESOS Reports

Preparation and formal sign-off of compliant ESOS reports by our accredited ESOS Lead Assessors, ensuring accuracy, credibility, and regulatory assurance.

Energy Efficiency Recommendations

Practical recommendations tailored to your operations, highlighting opportunities to reduce energy consumption, improve efficiency, and lower carbon emissions.

ESOS Action Plans

Clear, structured action plans outlining recommended measures, timescales and responsibilities to support implementation and ongoing energy performance improvement.

ESOS Annual Progress Updates

Ongoing progress updates to track energy efficiency improvements, demonstrate continued commitment and support internal reporting between ESOS compliance phases.

Frequently Asked Questions

Does ESOS apply to my organisation?

ESOS is required to be completed by large UK businesses:

Those who employ 250+ employees and/or
Those whose annual turnover is more than £44 million, and annual balance sheet totals more than £38 million

If your business qualifies as a large undertaking on the Phase 4 qualification date, 31st of December 2026, you are required to comply with ESOS regulations for Phase 4.

When should we start ESOS Phase 4?

The ESOS Phase 4 reporting period began on December 6, 2023, and the final compliance deadline is December 5, 2027. To stay ahead of deadlines, we recommend starting ESOS Phase 4 now, as work can take over 6 months to plan and carry out.

We have missed our ESOS deadline. Can you help?

Yes. We have experience in dealing with multiple late notice ESOS reporting requirements. We can work with you to ensure you are on the right side of the Environmental Agency (EA).

Do we need external verification for ESOS compliance?

Your ESOS assessment and audits must be conducted or reviewed by an ESOS Lead Assessor. The Lead Assessor must be a member of an approved professional body register.

What happens if we don’t comply with ESOS?

Organisations that fail to comply with ESOS requirements risk substantial penalties, ongoing daily fines, and regulatory scrutiny.

Failure to Notify: An initial penalty of up to £5,000, plus a daily penalty of up to £500 for each working day the organisation remains in breach.
Failure to Maintain Records: An initial penalty of up to £5,000, plus costs incurred by the compliance body to confirm compliance.
Failure to Undertake an Energy Audit: An initial penalty of up to £50,000, plus a daily penalty of up to £500 for each working day the organisation remains in breach.
Failure to Comply with an Enforcement/Penalty Notice: An initial penalty of up to £5,000, plus a daily penalty of up to £500.
False or Misleading Statement: A penalty of up to £50,000.

Want To Discuss Your Requirements?

True Solutions can offer further support to your business after the ESOS deadline, including assistance with completing ESOS Action Plans and Annual Progress Updates, helping your company maximise the opportunities presented by the scheme. Our proactive advisory services also help you stay on top of future compliance cycles.