Energy Savings Opportunity Scheme | ESOS Action Plan | Phase 3

If your organisation is obligated under the Energy Savings Opportunity Scheme (ESOS) we can support as auditors and/or Lead Assessors as well as development of ESOS action plans and annual progress updates.

For organisations obligated under Phase 3 requirement for ESOS Action Plan as set out in Regulations and guidance – 05 December 2024 compliance deadline (to be met where possible).

The Environment Agency will publish more guidance and an example of the online system template on or before the 01 November 2024. By that date the required functionality in MESOS should be available. Organisations should still look to meet the 05 December 2024 deadline where possible.

Due to a delay in provision of MESOS services, The Environment Agency and Regulators for the Devolved Administrations will accept submitted Action Plans provided submission by 05 March 2025.

Source: ESOS Newsletter (Issue 28, published September 24)

What should be included in ESOS Action Plan

Introduced in the third ESOS compliance period, obligated companies must produce an action plan, listing but not limited to:

what you intend to do to reduce energy consumption
when you intend to do it (Month/Year)
whether the task was recommended through your ESOS assessment or decarbonisation strategy for example
the energy savings you expect to achieve during the period covered by the action plan
how you estimated these savings.

The action plan must be signed off by a board level director (or equivalent) and submitted via the compliance notification portal by the action plan deadline (05 December 2024).

Following submission of the action plan, you must submit an annual progress update against your action plan commitments in the two subsequent years.

Read Environment Agency Guidance ‘Comply with the Energy Savings Opportunity Scheme (ESOS): phase 3.’

Why Work with Mabbett for ESOS?

We have over 25 years’ experience supporting UK business to reduce energy spanning across a wide variety of industries, such as food and drink, aerospace, industrial manufacturing, construction, chemicals, waste management, and everything in between. Not only does this mean less time spent getting “up to speed” on the needs of your business, but we will provide informed recommendations based on our previous experience.

We can also support other E.U. member states in complying with the equivalent 2012 European Union Energy Efficiency Directive, Article 8 requirements.

ISO 50001

If your organisation achieves certification to ISO 50001 (the international standard for energy management), then you can use this as an alternative route to ESOS compliance. Not only can we help you to develop, implement and audit ISO 50001, but we can also do the same for ISO 90001 (quality), ISO 14001 (environmental management) and ISO 45001/OHSAS 18001 (health and safety), allowing greater integration of these standards with your business strategy and operations.
- If your company energy spend is in excess of £200,000. per annum, then payback on investment in ISO 50001 is likely to be < 1 year, with savings accruing year on year.
- Companies with a larger spend on energy also will have an interest in how ISO 50001 can integrate with legally-required corporate Greenhouse Gas emissions reporting.

Experience and Expertise

Independent and impartial advice specific to you.
Many companies in the previous ESOS phases felt that ESOS audits didn’t deliver value. Our clients bucked this trend, with over £25 million of savings identified over 130 individual sites in Phase 1 alone. We are confident that we can assist you to identify significant cost savings and provide realistic action plans to aid implementation.
Our team’s depth of experience means that we can guide you through the entire process, from confirming your ESOS eligibility and the specific steps for your company, to the costs involved and the most suitable timescale.
If adopting the energy audit route to compliance, you are required to appoint a Lead Assessor to carry out and oversee or review your audits and overall ESOS assessment. We have several Lead Assessors who will help guide you to full compliance.
The Department of Agriculture, Environment and Rural Affairs (DAERA) awarded Mabbett the contract for ESOS Compliance Auditing of Northern Irish participants, meaning that we have a deep understanding of regulator expectations.

What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme for organisations in the U.K. that meet the qualification criteria of being a “large undertaking” (*definition below).

ESOS Phase 3 is now underway and qualifying companies have three important compliance steps to follow before 05 June 2024.

ESOS Phase 3 shouldn’t phase you. Whether you have already been through ESOS Phase 1 & 2, or are required to comply with ESOS for the first time, we can support and take you beyond compliance so your business will See a Difference.

Who has to comply with ESOS?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and energy saving identification scheme for large enterprises in the United Kingdom. It is administered by the Environment Agency.

Under ESOS, large enterprises in the UK are required to undertake energy assessments of their buildings, industrial processes, and transport to identify cost-effective energy saving measures. A large enterprise is defined as an undertaking that:

employs 250 or more persons, or
has an annual turnover in excess of £44 million and an annual balance sheet total in excess of £38 million.

This includes both private sector and public sector organisations.

If an organisation meets the criteria for a large enterprise, it is required to comply with ESOS. Failure to comply with the scheme can result in enforcement action, including fines of up to £50,000.

What is included in an ESOS assessment?

Under ESOS, large enterprises in the UK are required to undertake energy assessments of their buildings, industrial processes, and transport, and to identify cost-effective energy saving measures. The energy assessments must cover at least 95% of the organization’s total energy consumption, and must be reviewed by a qualified lead assessor.

The energy assessments should consider all significant energy use within the organization, including electricity, gas, oil, and other fuels.

The results of the energy assessments should be used to identify cost-effective energy saving opportunities, and to prepare an action plan detailing how the organization will implement the identified measures. The action plan should include details of the expected energy savings, the estimated costs and payback periods of the measures, and the timescales for implementation.