In 2014, Zenergi introduced the new government Energy Savings Opportunity Scheme (ESOS), outlining its purpose and impact on businesses. With Phase 2 of ESOS underway, it’s time for an updated look at what this means for qualifying organisations.

What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) is a government-led initiative designed to encourage large organizations to reduce energy consumption. By conducting regular assessments, organizations can identify cost-effective opportunities to save energy across their buildings, industrial processes, and transportation.

To qualify, organisations must meet one of the following criteria:

• Annual turnover of £40 million or more
• 250 or more employees

Smaller organisations, such as most educational institutions, generally fall outside the scope of ESOS. However, those meeting the criteria must take the following steps:

1. Measure total energy consumption across buildings, processes, and transportation.
2. Identify significant energy consumption areas, covering at least 90% of total energy use.
3. Choose a compliance method:
   • ESOS Energy Audit
   • ISO 50001 Certification
   • Display Energy Certificates
   • Green Deal Assessment
4. Appoint a lead assessor to oversee audits and ensure compliance.

It’s important to note that Phase 1 compliance does not carry over to Phase 2; a new assessment is required.

What is ESOS Phase 2?

The ESOS scheme is structured around four compliance phases, each four years apart. Phase 2 is focused on encouraging compliance from eligible businesses and updating assessments from Phase 1.

Key dates for Phase 2:

• Qualification date: December 31, 2018
• Compliance deadline: December 5, 2019

By the compliance deadline, qualifying organisations must complete their assessment and notify the relevant authority of their compliance.

How to comply with ESOS Phase 2

While the compliance deadline may seem far off, the process of auditing an entire business is time-intensive. Starting early can help you avoid last-minute issues.

For organisations that implemented changes from Phase 1, energy consumption may have already decreased. However, compliance with ESOS requires reassessment every four years, regardless of prior improvements.

Achieving ISO 50001 Certification

One way to simplify compliance is through ISO 50001 certification, which automatically fulfills ESOS requirements. Certification incentivises businesses to act on the recommendations from their ESOS assessments, providing benefits such as:

• Streamlined compliance
• Reduced energy consumption
• Cost savings

Why ESOS compliance matters

Conducting a full audit of energy use is not only a legal obligation for large organizations under ESOS but also a critical opportunity to:

• Identify cost-saving measures
• Reduce environmental impact

Progress toward ISO 50001 certification

By taking proactive steps, businesses can secure compliance while improving their energy efficiency and financial performance.

If you have questions about ESOS Phase 2 or need assistance with compliance, please reach get in touch. Our team is here to help!