What is ESOS?

The Energy Saving Opportunities Scheme is an important step in reducing energy wastage and consumption in the UK. All businesses have a responsibility to reduce wasted and consumed energy, however only large companies have to complete a mandatory ESOS assessment every 4 years, identifying areas for improvement. In this blog, Boxfish introduces ESOS and how it can affect your business.

So how often is ESOS? ESOS assessments must happen every 4 years for all qualifying UK businesses. Failure to comply with the ESOS regulations, will result in fines that increase with time. Once complete, your business will receive specific recommendations to help you reduce energy consumption and save on energy bills, creating a predictable budget.

Read on to find out more about ESOS and how it impacts UK businesses.

How Often Does ESOS Happen?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment to ensure that businesses meet the qualifications criteria in the UK. ESOS assessments must be carried out every 4 years for any qualifying UK business. These 4 year gaps are also known as phases. The assessment is used to understand where energy is used and wasted within your organisation and identify opportunities for improvement. 

The auditor will use 12 months of your business’ energy data combined with site surveys using energy consumption profiling to complete the ESOS assessment. Larger businesses will of course use more energy than smaller businesses, especially if they have heavy machinery usage or require a lot of transport of employees and equipment. 95% of your businesses total energy usage data is a requirement in the ESOS assessment which can be split into different sections such as fuel, various sites and sectors of the organisation.

There are penalties where businesses fail to comply with the regulations and these penalties will increase the longer the business remains in breach. This means it is vital for businesses to be aware of the requirements, deadlines and how to maintain energy data records. These penalties however don’t extend to implementing the recommendations as only the initial assessment is mandatory.

For more information on the ESOS process, download our free ESOS Factsheet.

When is Phase 3 of ESOS?

The qualification date for phase 3 is 31 December 2022 with submission due on or before 05 December 2023. In practice for most companies they will know now that they’re in (some might be on the limits and will need to assess the situation on 31 December) which means they can get started anytime from now onwards.
Getting started early is a good strategy as most companies left it late in Phase 1 and 2 creating bottlenecks and pushing up the cost. At Boxfish, we’re offering incentives to start early so we can better spread the workload over 2023.

Which Businesses Require ESOS Assessments?

Most large businesses have a requirement of an ESOS assessment every 4 years if they meet the following criteria:

– They have 250 or more employees
– They have an annual turnover in excess of £44 million and an annual balance sheet total in excess of £38 million

If your organisation is part of a larger group that meets the above criteria, the highest UK parent is responsible for ensuring that the whole group complies with the requirements of ESOS.

What Recommendations Will My Business Receive?

A large part of ESOS is the recommendations for businesses to help them reduce their energy consumption and save money on bills. You will receive recommendations specific to your organisation with an emphasis on the most practical and cost effective solutions to save energy wastage. The type of work and equipment used will differ from business to business, meaning the recommendations should be very specific to your requirements.

What are the benefits of esos?

The benefits of ESOS make it worthwhile to complete and avoid the various potential fines. Not only can fines be costly to your business, it can negatively impact your reputation as the Environment Agency may publish your penalty and the reason for it on their website. Make sure you are aware of the ESOS deadline to avoid fines. 

ESOS can save your business money in the long run when the recommendations outlined in the ESOS assessment are implemented into your business via increased energy efficiency and reduced waste. Having a clear overview of your business and the resources you are currently using can help you identify other areas for improvement and cost saving strategies.

Your business will have less of a negative impact on the environment, also maintaining or possibly improving word of mouth about your business. The more of an effort you make to reduce your carbon footprint, the more of a positive impression you will set for existing and potential customers. This could also have a knock on effect in encouraging customers and clients to follow your lead. 

Overall, complying with the ESOS regulations will grant your business a clearer more predictable energy budget. The whole scheme is designed to help businesses, ensuring it is running as energy efficiently as possible, a win-win situation as it also helps to make the planet greener.

ESOS Guidance Services at Boxfish

At Boxfish, we have a team of experts ready to guide you through the ESOS process, ensuring your assessment is completed correctly. You will be provided with energy-saving recommendations to save your business money, reduce your carbon footprint and make your business ESOS compliant. 

Contact a member of the Boxfish team today on 0141 226 8525 to start your ESOS journey. Or, for more information on ESOS, download our free ESOS factsheet.


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