Understanding ESOS phase 3

ESOS is a mandatory scheme enforced by the Environment Agency that aims to encourage energy efficiency by requiring qualifying organisations to report on their energy usage every four years.

Introduced in 2014, the Energy Savings Opportunity Scheme (ESOS) has become a key part of the UK’s efforts to reduce energy consumption and promote sustainability. As the country intensifies its commitment to achieving net-zero emissions, ESOS is expected to play an increasingly significant role in driving energy efficiency.

What’s new in ESOS Phase 3?

As part of Phase 3, launched in 2024, ESOS now includes additional steps that encourage organisations to take a more active and ongoing role in their energy management. These new steps allow you to track your progress against energy efficiency measures in between phases to encourage ongoing energy efficiency.

The additional requirements introduced in ESOS Phase 3 are:

• An ESOS action plan outlining energy-saving goals and initiatives.
• Annual ESOS progress updates tracking achievement against these goals over the next two years.

The action plan must be signed off by a board level director (or equivalent) and submitted via the compliance notification system. Although the submission deadline was initially set for 5 December 2024, it has been extended to 5 March 2025.

Why submitting your action plan early makes sense

The introduction of the Annual Review transforms ESOS into a more strategic long-term process that encourages you to view your energy-saving efforts as an ongoing priority, rather than a one-time exercise. By submitting your action plan by the 5 December deadline, you allow your organisation more time to implement the energy-saving measures identified during the audits, putting you in a stronger position to meet the requirements of Phase 4 in 2027.

Key dates for compliance with the ESOS Annual Review:

• Submit your ESOS action plan by 5 December 2024 (with an extended deadline of 5 March 2025)
• Annual Progress Update (Year 1): Submit your first progress update by 5 December 2025.
• Annual Progress Update (Year 2): Submit your second progress update by 5 December 2026.

Zenergi’s role in leading energy efficiency

At Zenergi, we are committed to helping you meet the requirements of ESOS Phase 3 while maximising the energy-saving opportunities uncovered during the audit process. In Phase 3, our experienced team supported 172 customers in meeting the 6 August compliance deadline, undertaking:

• 443 site audits
• 94 transport audits

These assessments identified 4,036 energy efficiency measures, representing significant annual savings:

• 530 million kWh energy savings
• £78 million cost savings
• 116,900 tCO²e  carbon emission savings

Zenergi’s value-added service for compliance with ESOS Annual Review

Our value-added service for ESOS compliance goes beyond the basics, helping you not only to comply but also to optimise your energy use. Key features of our service include:

• Dedicated client dashboard: Powered by advanced technology, our dashboard offers a centralised view of all the opportunities identified during the ESOS audits. You can easily drill down into the data to make insightful decisions about where to focus your energy-saving efforts.
• Opportunity summaries: Each energy-saving opportunity is summarised, showing estimated cost savings, energy reductions, and carbon savings. This enables you to prioritise actions that will have the biggest impact on both your financial bottom line and your environmental footprint.
• Stakeholder reporting: Our system allows you to export data and reports to meet stakeholder requirements, ensuring transparency and accountability in your energy efficiency strategy.

Next steps

With ESOS Phase 3 in full swing, it’s essential you not only meet compliance requirements but also seize the opportunity to drive long-term energy efficiency improvements. Zenergi’s expert team is ready to support your journey, ensuring compliance while helping you unlock significant savings and enhance your sustainability efforts.

By proactively managing the Annual Review process, we ensure your business remains on track for success not just for Phase 3, but also for Phase 4 and beyond.