Are you affected by the ESOS regulations?

Your will have to comply with the requirements of the ESOS regulations if:

  • Your organisation employs more than 250 people
  • You employ less than 250 people, but have a turnover greater than 50 million Euros or your balance sheet is greater than 43 million Euros.

The ESOS regulations apply mainly to businesses, but will apply to any non-profit or other non-public sector organisation that meets the criteria.

Third compliance period

For the qualification date for the third compliance period (31 December 2022) a large undertaking is any UK company that either:

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

You must take part in ESOS if your undertaking is part of a corporate group which includes another UK undertaking or UK establishment which meets these criteria.

GOV.UK: ESOS Qualification criteria

Who administers the ESOS regulations?

The Environment Agency (EA) administers the scheme for the whole of the UK.

What do I need to do?

If you are affected by the ESOS regulations then you must:

  • Calculate total energy consumption. This includes energy used in buildings, processes and transport by your organisation or group.
  • Identify areas of significant consumption. This must account for 90% of total energy used by your organisation.
  • Appoint a lead assessor. Your lead assessor with carry out or oversee your energy audits or overall ESOS assessment.
  • Notify the Environment Agency. By 31 December 2023 you must submit your ESOS notification of compliance to the EA.
  • Keep records. You must keep records of how you have complied with the ESOS regulations.

Where can I get detailed guidance on the ESOS regulations?

The Carbon Trust has produced a guide to the ESOS regulations and can offer services to help achieve compliance.

The Carbon Trust: ESOS - UK Energy Savings Opportunities Scheme

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