Are you ready for ESOS Phase 3?

14th March 2023
Reading time < 2 minutes

The Energy Savings Opportunities Scheme (ESOS) is a mandatory energy assessment scheme enforced by the Environment Agency. It requires qualifying organisations to report on their energy usage every four years. Although the requirements can be complex, businesses that qualify must act fast to meet the 5 June 2024 reporting deadline.

Who qualifies under phase 3?

For the current reporting phase (up to December 2023) your organisation will need to comply if the following applies:

  • Employs 250 people or more

or

  • Annual turnover exceeds £44 million, and annual balance sheet exceeds £38 million

or

  • Part of a corporate group containing a UK company that meets the above criteria.

If your organisation fell within the scope of ESOS for previous phases of compliance, it is likely it will also qualify for phase 3. If your organisation qualified for phase 2 but no longer qualifies for phase 3, it is important to ensure you have checked two years’ of financial accounts and notified the Environment Agency of the change.

A 5-step plan to compliance

  1. Calculate your total energy consumption
  2. Identify your areas of significant energy consumption
  3. Complete the required audits for one year’s consumption under the direction of a lead assessor
  4. Submit your ESOS notification of compliance to the Environment Agency
  5. Keep records of compliance in an evidence pack

What is the risk of non-compliance?

Penalties for failing to comply fully, or for false or misleading statements can range from between £5,000 and £90,000. The Environment Agency has handed out hundreds of enforcement notices in the first two phases with the names of the companies falling foul of the deadline being named, risking an organisation’s reputation too.

The Environment Agency audits evidence packs and the Phase 2 auditing programme resulted in just 30% of all ESOS audits being compliant, with 7% being non-compliant and 63% compliant with remedial action required. Zenergi’s Technical Services team achieved 100% compliance on all reports submitted on behalf of clients.

So far, the Environment Agency has issued

  • 2751 Compliance Notices
  • 2133 Enforcement Notices
  • 82 Civil Penalties amounting to £1,271,440

How Briar can support

Gathering energy consumption data can be time-consuming, especially when doing this for the first time, or for organisations spread over a number of sites, or those who have undergone a number of significant changes between phases.

Briar's ESOS service manages the data collection and reporting process right through to compliance, in addition to driving a vigilant preparation process during non-reporting periods. Engaging with Briarfor your ESOS reporting means you’ll have qualified and registered lead assessors on hand to review and guide the process, while also identifying how you can improve energy efficiency, allowing significant savings on energy spend.

Getting started is easy – simply complete this questionnaire and our team will provide you with a detailed ESOS Phase 3 compliance proposal.

For further information please contact ESOS@zenergi.co.uk.

Share this:

More news from Briar

20th February 2024
Scheduled Phone Downtime: Briar Customers

We wanted to inform you of an important update regarding our phones. Tomorrow, between 9:00 a.m. and 12:00 p.m., we will be undergoing a necessary upgrade to improve our phone system. During this period, our phone lines will be temporarily unavailable, meaning you won't be able to reach us via phone. We understand the importance […]

Read More
18th October 2023
Condition Improvement Fund (CIF): Prepare to access funding from the annual grant scheme

If your school premises is in need of repair, renovation or expansion, you may be eligible for a grant from the Condition Improvement Fund (CIF) The Condition Improvement Fund is a government scheme that provides funding for schools, academies and sixth-form colleges via an annual bidding round. Successful bidders receive a non-repayable grant to allow […]

Read More
24th July 2023
Maximising your Social Housing Decarbonisation Fund grant to accelerate your energy, carbon and cost-saving objectives

The government’s Social Housing Decarbonisation Fund aims to reduce carbon emissions and improve energy efficiency in social housing by funding retrofitting of energy-saving measures in ageing housing stock. If you’ve been successful in receiving a share of the fund, you might be wondering what the best way is to maximise the funding to improve the […]

Read More