ESOS Phase 4 Update: Time is running out!
ESOS Mandatory Energy Audit: Does your Business Comply? Time is running out!
10,000 of the UK’s largest businesses have to comply with the phase 4 Energy Savings Opportunity Scheme (ESOS) and conduct a mandatory energy audit across buildings, transport and industrial operations by 5th December 2027.
Which Businesses are Effected by the ESOS Phase 4 Update?
Any company with more than 250 staff, or less than 250 staff but a turnover of over €50m and balance sheet exceeding €43m, must comply with ESOS. It also applies to smaller companies who are part of a corporate group which includes a business which meets those non-SME criteria.
Businesses can’t afford to ignore ESOS – compliance is not optional.
More importantly, any delay in action could mean potential savings go unrealised. Often, the potential savings outweigh the cost of compliance.
If you’re not sure if your business fits the criteria or would like some advice on ESOS contact our team today.
What is Involved in Phase 4 of ESOS?
During 2025 and beyond, organisations will need to carry out audits and submit reports for their buildings in order to comply with ESOS. There are various routes to ESOS compliance to include having in place ISO 50001 (covering all energy use), or to carry out ESOS audits, Green Deal assessments or produce a Display Energy Certificate.
For those organisations looking to implement ISO 50001 as their route to compliance – contact Blackmoores today! Certification bodies are currently quoting a lead time of up to 6 months for ISO 50001 assessments so now is the time to act!
Key Changes in ESOS Phase 4
Compared to previous phases, Phase 4 introduces or updates some requirements, while other proposed changes have been postponed:
Changes that will apply in Phase 4:
- Compliance routes: The use of Display Energy Certificates (DECs) and Green Deal Assessments (GDAs) will no longer be accepted as valid compliance routes.
- The assessment must include progress against the organisation’s action plan commitments. If commitments have not been met, you must provide an explanation.
Changes that won’t happen yet and have been deferred until Phase 5:
- Mandatory “net zero” alignment has been delayed until Phase 5 (2027-2031).
- Changes to the qualification thresholds will not apply in Phase 4.
If you have any questions about ESOS Phase 4, please contact our team.
Penalties for Not Complying with ESOS
The deadline for compliance with Phase 4 of ESOS is 5th December 2027, by which time qualifying organisations must have carried out their ESOS assessment and have notified the Environment Agency (EA). The penalties for failure to act are severe.
Failure to notify – fixed penalty of up to £5,000. Thereafter, an additional £500 for each working day starting on the day after service of the penalty notice until the notification is completed, subject to a maximum of 80 days
Failure to maintain records – fixed penalty of up to £5,000. Thereafter, the cost to the compliance body for undertaking sufficient auditing activity to confirm that an organisation has complied with ESOS.
Failure to undertake an energy audit – A fixed penalty of up to £50,000. Thereafter, an additional £500 for each working day starting on the day after service of the compliance notice, until the breach is remedied, subject to a maximum of 80 days
Failure to comply with a compliance/enforcement/penalty notice – fixed penalty of up to £5,000. Thereafter, an additional £500 for each working day starting on the day after service of the penalty notice, until the breach is remedied, subject to a maximum of 80 days.
False or misleading statement – A fixed penalty of up to £50,000.
For all of the above, an additional ‘Publication’ penalty may be imposed. This involves the regulator publishing details on their webpages of the person on whom the penalty was imposed; the legal requirement that was not complied with; and the amount of any financial penalty imposed.
How Blackmores can help you comply with ESOS?
Whichever route you choose to take to comply with ESOS Blackmores can assist.
Blackmores has experience of implementing ISO 50001 energy management systems in various industries and has qualified ISO 50001 Lead Auditors (IRCA Registered Course).
Should you wish to go down the ESOS Energy Review route we also have several partners we can refer you to.
Please contact us for more information on helping you get compliant!
