Regulatory Updates - Smarter Business

ESOS Phase 2 Dates and Update

ESOS Phase 2 dates are nearing. Here’s what you need to know.

What are the ESOS Phase 2 dates?

  • ESOS Phase 2 Date 1: 31 December 2018 – Qualifying
  • ESOS Phase 2 Date 2: 5 December 2019 – Reporting
  • ESOS Phase 2 Date 3: Any 12-month period containing the 31st December 2018 is the data collection period.

31 December 2018 is the ‘deciding’ date about whether or not your organisation qualifies for ESOS reporting.

All ESOS reporting must be completed, signed off and filed with the Environment Agency by 5 December 2019.

What is ESOS?

ESOS stands for the Energy Savings Opportunity Scheme. It was established by the UK government to implement Article 8 (4 to 6) of the EU Energy Efficiency Directive (2012/27/EU).

It is mandatory for organisations in the UK that meet certain criteria to undergo an ESOS energy assessment, administered by the Environment Agency. These organisations must carry out an ESOS assessment every four years to identify cost-effective energy saving measures.

What’s included in an ESOS audit?

  • the energy used
  • industrial processes
  • transport

Which organisations are affected by ESOS?

Organisations that meet the ESOS definition of a large undertaking:

  • Employ 250 or more people
  • Annual turnover in excess of 50 million euro
  • Annual balance sheet total in excess of 43 million euro
  • Overseas companies with a UK-registered establishment with 250 or more UK employees (paying income tax in the UK)

Over 10,000 companies in the UK will need to comply.


ESOS Phase 2

What happens if ESOS Phase 2 dates are not met?

If your qualifying organisation fails to meet ESOS Phase 2 dates, you may face punitive action:

  • A fine of up to £50,000
  • and/or a fine of £500 per day of non-compliance (for a maximum of 80 days).

The Environment Agency has taken punitive action against 15 companies so far, including companies like Gumtree and eBay, with fines ranging from £1,560 to £45,00.

Top tips to meet ESOS Phase 2 dates

  • Don’t wait until the last minute
  • Process the ESOS data monthly

The benefits of ESOS reporting

Although ESOS reporting does add some additional energy administration, it can also unearth valuable opportunities for energy efficiency. Using the services of an expert utilities team can help you with both the reporting and with recommendations for improving your organisation’s energy efficiency.

Expert ESOS management

At Smarter Business, we offer a range of solutions aimed at guiding businesses through ESOS compliance and beyond. We help businesses drive efficiencies, reduce consumption and realise cost savings from their ESOS obligations.

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