Energy Saving Opportunity Scheme (ESOS)

What is ESOS?

Launched in 2014, ESOS is a mandatory energy assessment scheme and is the UK Government’s response to the implementation of Article 8 of the EU Energy Efficiency Directive – designed to support energy efficiency measures in the UK’s commercial and industrial sectors.

The Criteria for ESOS

You must take part in ESOS if, on the qualification date (31 December 2022 for Phase 3), your organisation (or UK group) either:

• Employs 250 or more people, or
• Has an annual turnover above £44 million and an annual balance sheet over £38 million.

Groups must include any UK undertaking that meets these thresholds.

What’s changing for Phase 4

The Government has confirmed that some previously announced reforms will not be introduced until Phase 5 (e.g., refocusing on Net-Zero, new qualification thresholds).

Planned changes for Phase 4 (subject to parliamentary approval) include:

• Removal of Display Energy Certificates (DECs) and Green Deal Assessments (GDAs) as compliance routes.
• Progress against Action Plan commitments must be included in the ESOS assessment.
• Where commitments haven’t been met, participants must provide an explanation.

New PAS 51215-1 & -2:2025 standards are available for voluntary use; PAS 51215:2014 remains the competency standard for Lead Assessors in Phase 4.

Energy Savings Opportunity Scheme (ESOS) and Streamlined Energy and Carbon Reporting (SECR) – What’s the difference?

ESOS is separate to the new streamlined energy and carbon reporting (SECR) framework which came into force on 1 April 2019 through The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

Many of the organisations that meet the criteria of ESOS will also have SECR obligations, which apply to all quoted companies, large unquoted companies, and large limited liability partnerships and require disclosure in annual reports of energy, emissions, and energy efficiency action taken.

Systems in place to collect and audit energy use to meet ESOS obligations and progress with implementation of ESOS recommendations can help organisations to meet SECR requirements.

More information on the ESOS eligibility criteria

You must take part in ESOS if your undertaking is part of a worldwide corporate group that includes another UK undertaking that meets either of the above conditions.

Approved ESOS Lead Assessor

As an approved ESOS Lead Assessor, SMARTech energy is among a select group of UK consultancies qualified to guide you through every step:

1. Initial scoping and data review.
2. Site surveys & metering: we install monitoring equipment to profile usage in detail.
3. Energy audits to identify practical savings opportunities.
4. Delivery of a full Energy Management Survey and compliance report for the Environment Agency.
5. Optional support via our Energy Efficiency-as-a-Service (EEaaS) programme, providing a CapEx-free route to implement measures and embed continual savings.

Going beyond compliance strengthens your CSR credentials and delivers long-term cost reductions.

The benefits of going through ESOS Compliance

• Meet statutory obligations and avoid civil penalties.
• Cut energy bills and carbon footprint.
• Demonstrate leadership in sustainability and corporate responsibility.

Our experience has shown that going beyond the mandatory environmental compliance makes for a compelling business case.

Are you looking to reduce energy bills?

Implementing effective cost energy-saving projects can reduce an organisation’s annual energy costs by 15%-33% or more, and with the need to protect the environment, together with rising energy costs, the offer of a financial return further contributes to an organisation’s sustainability objective.