Energy Savings Opportunity Scheme (ESOS)

Find out all you need to know about ESOS and the services LGE offer below

Established by the then Department of Energy & Climate Change, the Energy Savings Opportunity Scheme (ESOS) is a mandatory scheme which targets large UK businesses and is designed to increase engagement with energy management systems and reduce consumption. However, the benefits for smaller businesses are also numerous. ESOS phase 3 started on 6th December 2019 and each phase runs for four years but was extended due to the COVID-19 pandemic, subsequently the deadline of 5th June 2024 for phase three is fast approaching and phase 4 has already begun.

Participants must report on all energy consumption through buildings, industrial processes and transport over a 12-month period within certain deadlines. Reporting must be in line with ESOS standards and approved by a lead ESOS assessor. UK businesses which must partake have been defined as:

  • 250 employees or more
  • Has less than 250 employees but a turnover of more than £44 million and a balance sheet more than £38 million

Penalties for non-compliance include a variety of measures:

  • Disclosure of client information on the Environment Agency website
  • £5,000 fine for failure to meet deadlines or adequate standards
  • £50,000 fixed penalty for failure to conduct an ESOS assessment
  • Fixed penalties of £5,000 for failure to comply with enforcement notices
  • Up to £50,000 fines for making false statements

How LGE can help?

LGE offers a comprehensive range of consultancy services, with our scope of services for ESOS being modular and following the below three steps:

  1. Pre-Desktop Analysis- A structured approach which targets the efficient compliance route through an initial meeting to establish all data, understanding organisational structure and boundaries and an examination of 12-month reference period
  2. Survey- Examines metering equipment and where energy is consumed, reviews general energy management policies and potential improvements to building fabric, studies existing heating arrangements, appraises existing energy controls and audits electricity usage
  3. Post-Survey- An ESOS compliant report will be provided to examine all energy saving options, with clear recommendations on a spreadsheet which are divided into low-cost and medium-high cost energy saving measures

If you think you qualify for ESOS it is not too late to ensure compliance, speak to your account manager now or contact us at

ESOS4 Action Plan:

With the ESOS phase 3 deadline fast approaching, attention is subsequently beginning to turn toward phase 4 and the new reporting requirements. Updated guidance states that a energy reduction action plan for this next phase must be submitted by 5th December 2024, otherwise the Environment Agency has the power to publicly communicate that no commitments have been made by your business. The action plan will require board level director sign-off.

LGE’s comprehensive expertise in handling ESOS for clients in its previous phases means that we can ensure you are ahead of the curve when it comes to phase 4 requirements. To ensure timely submission of your action plan, speak to your account manager or contact us at