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The Energy Savings Opportunity Scheme (ESOS) was originally designed by the government to improve business energy efficiency and reduce costs. It is a mandatory energy assessment and reporting scheme for large businesses in the UK. Organisations must carry out energy audits and complete an assessment every four years, reporting their findings to the Environment Agency.

The purpose of ESOS is to help businesses improve their energy efficiency and save money. By assessing their energy use, businesses can identify opportunities to reduce their consumption and costs. ESOS compliance reporting helps businesses to track their progress in becoming more energy efficient over time and is now seen as contributing to the UK’s net zero commitment.

The 7 Steps of ESOS

There are 7 steps of ESOS to become compliant and these are:

  1. Determine whether you qualify for ESOS
  2. Consider if all of your energy consumption is covered by an ISO 50001 Energy Management System and if not, appoint a Lead Assessor
  3. Calculate your total energy consumption
  4. Identify your areas of significant energy consumption
  5. Consider your routes to ESOS compliance based on your energy consumption and carry out required energy audits
  6. Board level director to review findings of the assessment
  7. Report your ESOS compliance to the Environment Agency.


Organisations that fail to comply with ESOS could face fines of up to £50,000. Therefore, it is important for businesses to understand the requirements of the scheme and make sure they are compliant.

The clock is ticking and for ESOS Phase 3, you have until 5th December 2023 to report your Phase 3 compliance, if you have been considered an “ESOS large enterprise” or “large undertaking”, which means your company must undergo a comprehensive audit, it is more vital for start this process as soon as possible and get conducted by qualified assessors.

If you are a large business in the UK, ESOS compliance should be high on your agenda. Make sure you understand the requirements of the scheme and take action to ensure you are compliant. It could save you money and help you to become more energy efficient.