ESOS

Energy Savings Opportunity Scheme

The Energy Savings Opportunity Scheme (ESOS), introduced by the government, aims to boost businesses' energy efficiency, and is a mandatory programme for larger companies, commencing as from 31st December 2022.

As part of the ESOS, eligible businesses are required to track & report energy usage across their buildings, transport, and processes, whilst also encouraged to find cost effective ways to cut consumption.

The scheme runs in four-year phases, we are currently in phase 3 and the countdown to compliance has begun.

Here's how to ready your operations for the 5th December 2023 ESOS Phase 3 deadline.

Does my business qualify for ESOS Phase 3?

The Energy Savings Opportunity Scheme applies to companies that meet the criteria on the 31st December 2022.

Your organisation qualifies if it:

Employs 250 or more individuals, OR
Has an annual turnover in excess of £44 million and an annual balance sheet in excess of £38 million.

If you took part in two previous ESOS phases, it's likely you'll need to participate in phase 3.

You can check the full government guidance here.

My company qualifies for ESOS, what do I need to do?

The ESOS assessment is a six-stage journey:

register with the Department of Environment
Complete an ESOS Assessment
a. Calculate your businesses' total energy consumption
b. Identify and audit areas of significant energy consumption
Create an ESOS compliance plan
Appoint a lead assessor to carry out and oversee/review your energy audits and ESOS assessment
Notify the Department of Environment by the deadline, 5th December 2023
Keep accurate compliance records

Ensuring you work with a trusted partner can streamline the process, helping you navigate audit requirements and ensure your submission fully complies with ESOS guidance.

At AMA Services Ltd we are experienced sustainability consultants and certified ESOS Leas Assessors who will carry out the ESOS Assessments, including energy audits and guide you through every step of the process to guarantee compliance.

Are there penalties for not complying with ESOS?

YES! And they're getting steeper!

Failure to notify the Department of Environment, can lead to an initial penalty of up to £5,000 and a daily fine of £500 for each working day of non-compliance. Whilst making false or misleading statements could lead to fees of up to £50,000.

What has changed in ESOS Phase 3?

Although Gibraltar has not yet updated the Phase 3 guidance, they will most likely follow the U.K. ESOS Phase 3 regulations. The changes to the U.K. ESOS Phase 3 are as follows:

The 'de minimis' threshold for ESOS Phase 3 has reduced from 10% to 5%. This means 95% of your overall energy consumption must be covered by an appropriate ESOS energy audit.

Business will not be allowed to simply replicate the same historical ESOS energy audits for ESOS Phase 3 and expect to see different and progressive energy audits.

Proposed changes to Phase 4 of ESOS will require you to link energy and carbon and have a decarbonisation plan alongside you energy audit. We offer this as standard, so get ahead of the curve with ESOS Phase 3 and ensure your business is on the road to decarbonisation.