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What is ESOS Phase 2?

🕑 3 minutes read

Back in 2014, Zenergi published a blog about the Energy Savings Opportunity Scheme (ESOS), what it was, and how it affected businesses. Well, that scheme entered its second phase last year, so it’s high time we brought out an update for anyone wondering how this will impact them.

What is ESOS?

In case anyone has forgotten, the aim of ESOS is to encourage large organisations to save energy and money by requiring said organisations to undertake regular assessments that can identify cost-effective measures to save energy. These could be savings on the buildings’ utilities, industrial processes, or transport.

Since ESOS is aimed at large organisations with a minimum turnover of £40m or at least 250 employees, many educational institutes will not meet the criteria and won’t have signed up for ESOS. However, those that do meet the criteria need to have done the following:

  • Measure their total energy consumption, including transportation
  • Identify areas of significant energy consumption (at least 90% of the total)
  • Select and implement one of the following routes of compliance:
    • ESOS Energy Audit
    • ISO 50001 Certification
    • Display Energy Certificates
    • Green Deal Assessments
  • Select a ‘lead assessor’ to oversee the audits and overall assessment – this can be done by becoming a member of an approved professional body register, or bringing in an expert.

However, this information cannot be used to demonstrate compliance with phase 2 of ESOS. Phase 2 will require a brand new assessment.

What is ESOS Phase 2?

The scheme was planned around four different compliance periods, each four years apart. At the end of each four years, qualifying companies must comply with the regulations. Phase 2 of ESOS looks to encourage more eligible businesses to comply.

It’s about updating the requirements of the ESOS and renewing compliance from Phase 1. The same will be required when ESOS Phase 3 begins. By the end of Phase 2 – at the close of 2019 – an organisation should have signed off and notified the relevant authority about their compliance.

How can I comply with ESOS Phase 2?

The qualification date for Phase 2 is December 31st, 2018 and the compliance date is December 5th, 2019. While this seems like a long way away, auditing your entire business is a long process and getting an early start is advisable.

If you were able to implement any of your initial recommended changes from Stage 1, energy consumption should have dropped. However, you will still need to go through with the assessment every four years regardless of how much energy you saved or what measures you have implemented.

There is, however, a way to get a ‘free pass’ from the ESOS assessment, and that’s to be ISO 50001 accredited. An institute that’s certified ISO 50001 automatically complies with ESOS, which should give some incentive to action the ideas your ESOS assessment revealed.


Under the ESOS, completing a full audit of your energy use is a necessity if you are a large organisation. If your company then takes action to reduce energy consumption it will not only save money and reduce your impact on the environment, but you will get closer to ISO 50001 certification, meaning you automatically comply with ESOS.

If you have any questions regarding ESOS Phase 2, please feel free to get in touch via our contact page and we will be happy to offer any guidance we can.


29 May 2018

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