ESOS is a mandatory energy assessment scheme for larger organisations in the UK that meet the qualification criteria.
The UK government established ESOS to implement Article 8 (4 to 6) of the EU Energy Efficiency Directive (2012/27/EU). The ESOS Regulations 2014 gave effect to the scheme. It is administered by the Environment Agency for organisations whose registered office is in England.
Organisations which qualify for ESOS must have their ESOS assessments carried out every 4 years. ESOS assessments are audits of the energy used by the organisation’s buildings, industrial processes and transport so cost-effective energy saving measures can be identified.
ESOS is applicable to large UK undertakings and their corporate groups, so it mainly applies to businesses. It can also apply to not-for-profit entities and any other undertakings which are not public sector and are large enough to meet the qualification criteria.
Corporate groups qualify if at least one UK group member meets the ESOS definition of a large undertaking.
For the qualification date for the third compliance period (31 December 2022) a large undertaking is any UK company that either:
employs 250 or more people
has an annual turnover in excess of £44 million, and an annual balance sheet total in excess of £38 million
UK registered establishments of an overseas company will also need to take part in ESOS (regardless of their size) if any other part of their global corporate group activities in the UK meet the ESOS qualifying criteria.