Energy Saving Opportunity Scheme (ESOS) Reporting and Management

With evolving ESOS requirements, Dremcon think ahead to ensure our energy audit reporting is done with progression in mind, therefore avoiding fines, saving energy, and ensuring compliance.

NOTE: Organisations with 40MWh or less during the qualification period is not required to have an ESOS Lead Assessor sign off the energy reporting. Nor is an ISO accredited 50,001company required to have an ESOS Lead Assessor albeit they are still required to notify and report their results.

Should the organisation qualify for ESOS without other ISO 50,001 energy managements reviews, it must have their ESOS reporting for each four-year cycle signed off by an ESOS Lead Assessor, but their ESOS action plans and ESOS annual progress reports do not.

There are various phases with ESOS and we are currently within our third phase, however organisations still have annual responsibilities in annually reviewing their energy use and actioning improvements they must be aware of in avoiding potential fines.

WHAT IS ESOS?

ESOS is a mandatory energy assessment and energy-saving identification scheme aimed at large undertakings. You must take part in ESOS if your organisation, or any UK undertakings within your organisation's group qualify on the pre-determined qualification date.

Government Timelines for EPCs on Commercial Properties

NOTE: The Government in 2025 are seeking to reform the Energy Performance of Buildings (EPB) framework which may change our current expectations and timelines in the production of EPCs of which we are part of. Once further information is confirmed as a result of this reform and with any changes made to EPB we will be able to provide further information to this regard. Please ask us if you seek any further guidance.

1st April 2018

Unlawful to grant any new leases to a property with and EPC rating below an ‘E’ which is the minimum standard

1st April 2023

Unlawful to continue to let a property with and EPC rating below an ‘E’ which is the minimum standard

1st April 2025

(anticipated)

Requirement to register a valid EPC to let a property

1st April 2028

(current plan)

The minimum standard of EPC rating to increase from the current ‘E’ rating to ‘C’ rating

1st April 2030

(future plan)

The minimum standard of EPC rating to increase from the current ‘E’ rating to ‘B’ rating

1st April 2050

(future plan)

The minimum standard of EPC rating to increase from the current ‘E’ rating to beyond a ‘B’ rating in achieving ‘Net-Zero Carbon’ targets

Reporting is undertaken in 4-year cycles, with intermediate annual requirements for ESOS action plans, and ESOS progress reports are now a requirement following the scheme's phase 3 reporting.

Introduced in the UK since 2014, ESOS phase 1 reporting took place in 2015, phase 2 in 2019, and phase 3 in 2023, leading us onto phase 4 in 2027.

The qualification date for the fourth compliance period is 31st December 2026.

A 'large undertaking' is currently any UK undertaking that meets one or both of the following conditions:

Has an annual turnover in excess of £44 million and an annual balance sheet total in excess of £38 million.
Employs 250 or more people.

WHAT DO YOU NEED TO REPORT ON?

Initial discussions are key in understanding the ESOS stage works required and therefore further discussions are needed regarding assistance with ESOS reporting, action plans, or progress reporting.

Energy reporting and/or reviews are carried out on UK assets only including:

Buildings
Transport
Industrial or other energy use

Organisation and UK based energy is reviewed in terms total energy consumption and significant energy uses to determine strategies for energy savings and planning to reduce organisational energy against fixed energy intensities.

Enforcement Risk

The Environmental Agency (EA) can impose fines for non-compliance where ESOS has not been completed but required. These can include:

Issue Public Censure

Publication that can damage an organisations reputation in failing to comply with Scheme Regulations

Failure to Notify

A one-time fine of up to £50,000, plus a daily fine of up to £500/day of non-compliance

How can we help?

At Dremcon, we provide bespoke ESOS management and advice using our knowledge of requirements of the scheme dating back to the first phase of the scheme reporting since 2011. Our approach is going above and beyond the ESOS requirements using our knowledge with building services and carbon reporting to allow accurate road mapping of organisational energy improvements which are not only manageable but also cost effective. For some organisations this includes review of water use and carbon monitoring alongside energy which is no currently an ESOS requirement but allows for informative annual reviews.

We can mange all aspects of ESOS to suit your needs including, but not limited to:

ESOS Reporting
ESOS Action Plan Reporting
ESOS Annual Progress Update Reporting
Energy management for annual reporting and reviews
ESOS calculations
ESOS reviews against SECR Reporting

At Dremcon we work to advise and support our clients through ESOS compliance reporting, reviews, and management. Please contact us with any queries you have or in providing you with a quotation.

Client Feedback - with Thanks

"Thank you again for all your help with this; its much appreciated. After our CFOO reviewed, he thought it was excellent. It is very detailed and informative, allowing us to easily identify how and where we can improve on reducing our energy emissions"

What do we need from you?

Initial discussions are key to understanding your ESOS requirements and stages for reporting or reviewing ensuring we are able to capture everything required. Information required can include:

Building energy use (utility billing)
Transport energy use (UK business use only)
Industrial Processes energy use
Other energy use
Annual turnover
Annual employee levels
Information on energy efficiency works that may have been undertaken in the past or organisational targeting
Information on historic reporting or action plans