ESOS: Environment Agency targets non-compliant companies
Concept is aware that, since the ESOS compliance deadline of 6th August, several organisations have received letters from the Environment Agency regarding scheme participation.
This includes organisations that have never previously notified under the scheme – and may have been unaware that they are in scope.
What is ESOS?
The Energy Saving Opportunity Scheme – or ESOS for short – requires participants to carry out an assessment of their energy use and identify energy efficiency opportunities. The deadline for the current phase passed on 6th August 2024.
Organisations are then requested to produce and submit a detailed Action Plan, laying out how they will implement these opportunities, by 6th March 2025.
Are you eligible for ESOS?
ESOS affects “large UK undertakings” and their corporate groups. This means businesses, not-for-profit bodies and other non-public-sector organisations that either:
- employ 250 or more people, OR
- have an annual turnover in excess of £44 million and an annual balance sheet total in excess of £38 million
It is important to note that while eligibility is determined at individual company level, all UK companies within a global corporate group are required to participate if just one individual entity in the group meets the criteria above.
Penalties for ESOS non-compliance
The Environment Agency’s enforcement position is that a fine of up to £5000 is payable for failure to notify compliance by the deadline, with a daily penalty thereafter of £500. Failure to complete energy audits can attract penalties of up to £50,000 plus daily increments. There are also other penalties around non-compliance that may come into play, depending on the circumstances.
The EA will apply their Enforcement and Sanctions Policy when determining what actions (if any) to take in respect of any continuing non-compliance. It is in an organisation’s best interest to comply as soon as possible, to minimise the risk of enforcement action.
Advice and support
If you’ve been contacted by the EA or think you may be in scope of ESOS, Concept can help you establish your eligibility under the scheme. If eligible, we can support you through the whole compliance process.
Concept has been supporting organisations with ESOS since the scheme began in 2014. Compliance documentation is auditable – so we produce a robust submission that will minimise the risk of non-compliance.
Plus, we’ll help you create an Action Plan that will aim to drive long-term cost and energy savings, as well as streamlining the compliance process for future phases.
Download your free best practice guide now to unlock the full potential of your ESOS Action Plan and identify measures that pay.
For advice and support, get in touch.
