News
11 Sep 2024
As a business in the UK, you’re likely aware of the Energy Savings Opportunity Scheme (ESOS) and its regulatory requirements for large organisations. But did you know that ESOS offers more than just a compliance obligation? It’s a valuable opportunity to enhance your sustainability goals and seamlessly integrate energy efficiency into your overall strategy. By focusing on proactive energy management instead of merely meeting compliance, you can significantly reduce your energy costs, lower your carbon footprint and boost your reputation.
With the introduction of Phase 3 in 2024, ESOS has become even more accessible through the new Annual Review process. This initiative encourages you to commit to a two-year energy efficiency strategy, making it easier than ever to achieve your sustainability objectives.
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.
The scheme has been successful in reducing energy consumption , with Phase 2 resulting in estimated annual savings of:
These figures illustrate the potential for organisations like yours to reduce energy consumption and operational costs while making a significant contribution to carbon reduction goals.
As part of Phase 3, launched in 2024, ESOS now includes additional steps that allow organisations to track progress against energy-saving measures identified in their ESOS audits:
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. Meeting the December deadline will allow more time in 2025 to implement the energy saving initiatives. The addition of the Annual Review transforms ESOS into a longer-term, strategic process that encourages you to view your energy-saving efforts holistically, driving ongoing efficiencies as you prepare for ESOS Phase 4 in 2027.
Key dates: Complying with the ESOS Annual Review:
• Submit an ESOS action plan by 5 December 2024 (or by the extended deadline of 5 March 2025)
• Year 1: Submit an annual progress update by 5 December 2025
• Year 2: Submit an annual progress update by 5 December 2026
By actively implementing the energy-saving measures identified in your audits into your action plan, you can achieve substantial reductions in both energy consumption and operational costs.
Key ways you can leverage ESOS to drive ongoing energy efficiencies:
• Create a culture of energy efficiency: Engage employees at all levels in energy-saving initiatives. This not only helps reduce energy waste but fosters a company-wide commitment to sustainability
• Long-term energy strategy: Use the recommendations from your ESOS audits to develop a roadmap for energy efficiency that aligns with broader sustainability goals and net zero objectives
• Technological integration: Implement smart energy management technologies and monitoring systems to gain real-time insights into energy usage and performance. This allows for ongoing improvements beyond the mandatory four-year audits.
Zenergi’s ESOS service goes beyond compliance to maximise the energy-saving potential of the scheme. We take care of the entire process, from data collection to reporting. With energy and carbon analysts calculating energy consumption and identifying areas for improvement, and registered and qualified lead assessors on hand, organisations can achieve compliance, while improving energy efficiency and making significant savings.
In Phase 3, Zenergi supported 172 customers to meet the 6 August compliance deadline, undertaking:
• 443 site audits
• 94 transport audits
The 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 includes a dedicated client dashboard summarising opportunities. The dashboard allows you to view all the opportunities identified and to drill into the data to drive insightful decision making. Each opportunity is summarised, demonstrating the estimated cost savings, energy savings and carbon reductions, allowing you to prioritise your opportunities and track your progress. In addition, data can be exported to support stakeholder requirements.
ESOS is more than just a compliance obligation—it’s your gateway to significant cost reductions, enhanced energy efficiency, and robust sustainability achievements. With the launch of Phase 3’s Annual Review, you have a unique opportunity to adopt a strategic, long-term approach to energy management that delivers tangible results.
Don’t miss out on maximising the benefits of ESOS. Partner with Zenergi to ensure compliance and unlock the full potential of your energy-saving initiatives. Our expert team is ready to answer any questions you may have and support your journey every step of the way.
Let’s start the conversation! Contact us today to discover how we can help you achieve your sustainability goals and transform your energy management strategy.
[1] https://www.legislation.gov.uk/uksi/2014/1643/pdfs/uksiod_20141643_en.pdf
It's time to shift your focus to proactive energy management - reducing your costs, lowering your carbon footprint and enhancing your market reputation.
The Annual Review empowers your organisation to take a strategic, long-term approach that delivers real, measurable results.
