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


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


  • 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

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