ESOS Energy Assessment Scheme

ESOS is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. The Environment Agency is the UK scheme administrator. Organisations that qualify for ESOS must carry out ESOS assessments every 4 Years. 

These assessments are audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures. 

Organisations must notify the Environment Agency by a set deadline that they have complied with their ESOS obligations. You do not need to register as the Environment Agency do not expect to hear from organisations until 2015 when they are fully compliant. 

By 5th December 2015 qualifying organisations must carry out their ESOS assessment and notify the Environment Agency. Participants must then carry out an ESOS assessment in each subsequent 4-year compliance period, ending on the 5th December 2019, 2023 and so on. You do not need to register as the Environment Agency do not expect to hear from organisations until 2015 when they are fully compliant.

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Check if you need to comply

ESOS applies to large UK undertakings and their corporate groups. It mainly affects businesses but can also apply to not-for-profit bodies and any other non public sector undertakings that are large enough to meet the qualification criteria. 

Your organisation qualifies if, on 31 December 2014, it meets the ESOS definition of a large undertaking (explained later). Corporate groups qualify if at least one UK group member meets the ESOS definition of a large undertaking.

Large undertaking

A large undertaking is: 

1) Any UK company that either

2) Employs 250 or more people.

3) Has an annual turnover in excess of 50 million euros (£38,937,777), and an annual balance sheet total in excess of 43 million euro (£33,486,489). 

4) An overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK).

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 criteria. Where a corporate group participates in ESOS, unless otherwise agreed, the highest UK parent will act as a ‘responsible undertaking’ and be responsible for ensuring the group as a whole complies. 

UK registered establishments of an overseas company will also need to take part in ESOS (regardless of is size) if any other part of its global corporate group activities in the UK meet the ESOS qualifying criteria. An ’establishment’ is a branch within the meaning of the Eleventh Company Law Directive (89/666/EEC), or a place of business that is not such a branch where there is some degree of physical presence in the UK.