What is ESOS?
ESOS is an energy assessment scheme administered by The Environment Agency for UK organisations that meet the qualification criteria.
These organisations must ensure that they carry out these assessments every 4 years. The energy audit consists of looking into the organisation’s energy usage of buildings, industrial processes and transport and is designed to be a more cost-effective measure for businesses to save more energy and achieve carbon and cost savings.
Does my business qualify for ESOS Phase 3?
If on 31 December 2022 (or based on the accounts in the preceding 12 months), your business has:
- An undertaking of 250 or more employees in the UK
- An undertaking which has fewer than 250 employees but has:
- An annual turnover in excess of £44m AND
- A balance sheet (assets only) total in excess of £38m
- Part of a group which includes an undertaking that meets either a) or b) above.
Then, you would be classed as an organisation that qualifies for ESOS phase 3.
It therefore appears that the group overall size is not directly relevant. It may also be noted that the definition of “ESOS large company” is higher than the Companies Act definition of a ‘large company’.
Every organisation and corporate group that qualifies for ESOS (Phase 3) is required to complete an ESOS assessment and notify its compliance to The Environment Agency by 5 June 2024.
How do I complete an ESOS assessment?
- Calculate total energy consumption
- Identify areas of significant energy consumption
- Appoint a lead assessor to carry out and oversee or review the energy audits and overall assessments (Lead assessors can be employees or external contractors, if approved)
- Notify the Environment Agency that you have completed the ESOS assessment. Notification includes:
- Details about the organisation
- How it has complied
- Energy consumption information
- Energy saving opportunities identified
- Keep records.
The next step
For more information, please contact Stephen Grayson on s.grayson@uhy-manchester.com, or your usual UHY adviser.
