Everything you need to know about ESOS Phase 3 Extension

Posted: 22.06.2023

ESOS Phase 3, which is part of the Energy Savings Opportunity Scheme, was originally scheduled to conclude this year. However, the deadline has now been extended until June 5, 2024.

ESOS has been in operation since 2014, and its third phase began in 2022. Proposed changes to strengthen ESOS were subject to a government consultation, but the agreed-upon changes have yet to be implemented. In order to accommodate these new requirements and allow assessors to conduct assessments, the Environment Agency has announced an extension of the compliance date from the end of this year to June 5, 2024.


It’s important to note that while the compliance deadline has been extended, the qualification thresholds and dates remain unchanged. Therefore, any company or group that met the criteria as a large company for ESOS on December 31, 2022 (businesses with a turnover exceeding €50 million or with 250 or more employees) are still required to comply with ESOS Phase 3.

What is ESOS?

The Energy Saving Opportunity Scheme (ESOS) is mandatory for large companies with a turnover exceeding €50 million or with 250 or more employees. These companies are required to assess their energy usage and develop an energy-saving strategy.

To be ESOS compliant, your business must have 12 months’ worth of data available for assessment and submission, allowing sufficient time for processing. Our experience with ESOS audits and in-house energy audits over the past decade has demonstrated that most organizations have significant opportunities to save energy, costs, and emissions.


What are the consequences?

Not being ESOS compliant can have several implications for companies. Here are some of the potential consequences:

  1. Financial Penalties: Non-compliance with ESOS can result in financial penalties imposed by the regulatory authorities. The specific amount of the penalty can vary depending on the jurisdiction and the severity of the non-compliance.
  2. Reputational Damage: Failing to comply with energy efficiency regulations like ESOS can negatively impact a company’s reputation, particularly in terms of environmental responsibility. This can lead to loss of public trust and potential damage to the brand image.
  3. Legal Consequences: In some cases, non-compliance with ESOS can lead to legal consequences, including legal actions or proceedings initiated by regulatory bodies or affected parties. This can result in additional costs, litigation, and potential liabilities.
  4. Missed Cost Savings: ESOS compliance involves assessing energy use and identifying energy-saving opportunities. Failing to comply means missing out on potential cost savings and efficiency improvements that could have been identified through the assessment process.
  5. Limited Access to Contracts and Funding: Some contracts, tenders, or funding opportunities may require ESOS compliance as a prerequisite. Not being compliant can restrict a company’s ability to participate in such opportunities and can hinder its growth or access to financial resources.
  6. Limited Government Support: Non-compliant companies may miss out on government support programs, incentives, or grants that are aimed at promoting energy efficiency and sustainability. This can put them at a disadvantage compared to their compliant counterparts.
  7. It’s important for companies to understand the potential implications of non-compliance with ESOS and take the necessary steps to meet the requirements to avoid these consequences.


For more information about our ESOS services and to ensure you remain fully compliant with the ESOS Phase 3 regulations, speak to one of expert team to see how we can help you.

Discover more about our ESOS services

Reach out to our team here-

Telephone: 0800 260 5935
Email: enquiries@genex.co.uk

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