How to become ESOS compliant

The Energy Savings Opportunity Scheme (ESOS) was introduced in June 2014 by the UK Government to comply with the European Energy Efficiency Directive, which establishes a set of binding measures to help the EU reach its 20% energy efficiency target by 2020.

ESOS means that many companies across the UK must undertake energy audits every four years to identify potential energy savings.

The ESOS assessment covers all areas of UK operations over a 12-month period and requires participants to do the following:

  • Measure total energy consumption
  • Conduct energy audits to identify cost-effective energywp_20141110_008
  • Report compliance to the Environmental Agency

The type of work that your company does and the amount of energy you use is irrelevant. You must comply if you meet the below criteria:

  • You employ 250 people or more
  • You have an annual turnover in excess of £37 million and a balance sheet of more than £32 million
  • You are part of a group that includes at least one entity

ESOS could also affect companies in the not-for-profit and public sectors if they meet the above criteria.

How do you become ESOS compliant?

There are a number of energy saving measures that companies can implement to become ESOS compliant. Energy saving technologies such as solar PV, solar thermal and LED lighting can help your company cut down on costs and help reduce your carbon footprint.

The ESOS report is very detailed and includes energy saving technology recommendations that would be best suited to your business needs.

Included in the report is the amount of energy your business consumes and areas where usage can be reduced. All data assessed is also recorded in the ESOS report.

The easiest way to become ESOS compliant is by becoming ISO 50001 accredited. ISO 50001 supports organisations in all sectors to use energy more efficiently through the development of an Energy Management System (EnMS).

Other acceptable substitutes are Display Energy Certificates (DECs), Green Deal Assessments (GDAs) and ESOS compliant audits.

What are the benefits of ESOS?

According to the Department of Energy & Climate Change (DECC), large businesses can save around 15% of their expenditure through energy efficiency measures. The DECC also states that the potential savings identified by an ESOS audit can be 13.5 times greater than the cost of an audit.

The future of ESOS in its current form may well change as the Government announced in the Budget that it plans to simplify energy reporting into one single scheme.

However, the end of ESOS will not be determined by the UK leaving the European Union as it is now part of the UK’s own regulatory framework and would remain so until the Government chooses to revise the scheme.

To avoid penalties, it is advised to keep on top of your existing ESOS requirements until potential changes are announced.

Our award winning energy team have vast experience installing energy solutions to a number of commercial buildings.

If your business is going through the ESOS audit and looking to implement energy saving measures please contact our team on 0141 435 7774 or email

Further reading:

Complying with the Energy Savings Opportunity Scheme

Carbon Trust

Switch my Business

ESOS Information Hub






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