The government has given the go ahead for the second phase of ESOS, which is a mandatory UK energy assessment scheme that requires participants to measure their total energy consumption and identify energy saving opportunities.  

It is applicable to large organisations (with more than 250 employees, or a turnover of more than 50 million Euros and a total asset value on the company’s balance sheet worth more than 43 million Euros). Smaller businesses are not necessarily exempt. If they are part of a larger group and one of these companies meets the qualifying criteria, they are likely to fall into the scheme. 

ESOS Phase One operated over a four-year period from December 2011 to December 2015. The current second phase follows on from 6 December 2015 to 5 December 2019. It is likely that any business that participated in ESOS Phase One will be required to participate again, assuming that they still meet the qualification criteria. However, they cannot use the same data.  

The environment agencies take a hard line on penalising non-compliant organisations, who are liable for fines of up to £50,000. Details of non-compliant organisations are also published.

The process

•  Work out whether your organisation is required to participate in ESOS before the qualification date of 31 December 2018. 

•  Find an accredited ESOS lead assessor, who must be used to verify the overall compliance process, and could provide support throughout the process, if required.

•  Carry out assessment activities/audits for the compliance phase of 2015 to 2019, identifying cost effective energy saving opportunities.  

•  Measure and record your total UK energy consumption for a continuous minimum 12-month period. This must include all buildings, industrial processes and transport activities, and include or span the qualification date of 31 December 2018.

•  Complete your evidence pack and report on ESOS compliance to the Environment Agency by 5 December 2019.  

Routes to compliance

The ISO 50001 Energy Management Standard Businesses can provide automatic compliance if it covers an organisation's entire energy consumption data, across all activities. The international standard establishes policies and processes to track, analyse and use energy more efficiently via an energy management system. 

Other routes include using ESOS compliant energy surveys to identify energy saving opportunities across all company activities; commissioning Display Energy Certificates (DECs) and the accompanying energy saving advisory reports; or Green Deal Assessments. 

Audit work undertaken between 2015 and 2019 may also be considered. This might include activity under the Carbon Trust Standard, and Logistics and Green Fleet Reviews, where these meet the requirements of ESOS. 

Don't delay

During the first phase of ESOS, last minute bottlenecks were caused by the limited availability of accredited Lead Assessors. Delays can mean risking penalties for non-compliance and losing time in implementing the recommended energy saving measures that can cut business overheads. It isn’t compulsory to implement these energy saving recommendations, but it makes sense to do so.  

The environment agencies are advising companies to begin the auditing aspects of ESOS Phase Two as early as possible. This is particularly important for those selecting the ISO 50001 route as it can take 12 months to introduce a high performing energy management system and achieve certification.