EA strengthens ESOS penalties for non-compliance
The Environment Agency is set to strengthen its approach to ESOS enforcement, now that the scheme is in its third phase.
Previously not all those organisations liable for penalties received them; now that the scheme has reached maturity, the EA wants to take a more consistent approach.
Separate penalties will now be handed out for each breach of the Regulations. This means that if you undertake the energy audit correctly, but fail to notify the EA of compliance, you are still liable to receive a penalty.
The new ESOS non-compliance penalties:
A penalty will be imposed for each separate breach of these ESOS Regulations
- Failure to notify: an initial penalty up to £5,000, plus a daily penalty of up to £500 for each working day the organisation remains in breach. This penalty will apply regardless of whether (or not) the organisation has undertaken an energy audit.
- Failure to maintain records: an initial penalty of up to £5,000, plus a “sum representing the cost to the compliance body of confirming that the responsible undertaking has compliance complied with the scheme”. The organisation must also take steps to remedy the breach.
- Failure to undertake an energy audit: an initial penalty of up to £50,000, plus a daily penalty of up to £500 for each working day the organisation remains in breach. The organisation must also take steps to remedy the breach. Note that there is a more lenient approach for new entrants, however: a lower initial penalty of up to £5,000.
- Failure to comply with an enforcement/penalty notice: an initial penalty of up to £5,000; plus up to £500 for each working day the organisation remains in breach.
- False or misleading statement: up to £50,000.
The list of non-compliant organisations will be published on the government website.
Upcoming changes to ESOS phase 3
We’re also waiting to hear the outcome of a consultation which proposes major changes to the ESOS scheme, including requirements for organisations to disclose their ESOS data publicly and carry out a net zero assessment. You can read more about the likely ESOS changes here.
If you’d like advice or support with ESOS phase 3 compliance, get in touch.
