What is ESOS

The ultimate aim of ESOS is to encourage Organisations to save energy and money. It does this by requiring Organisations to undertake regular assessments to identify cost-effective energy savings measures on supplies to buildings, industrial processes and transport. ESOS is the UK Government’s response to Article 8 of the EU Energy Efficiency Directive calling for mandatory energy audits of large UK Organisations.

Who ESOS applies to

Organisations must take part in ESOS if they, or at least one of their UK group members, are a ‘large undertaking’. A ‘large undertaking’ is an organisation engaged in trade or business in the UK which:

  • Employs 250 or more people or
  • Employs fewer than 250 people but has an annual turnover greater than €50 million and an annual balance sheet above €43 million or
  • Is a part of a group that includes at least one entity in the UK that meets either of the criteria above

Organisations subject to the Public Contracts Regulations are exempt. The policy defines an undertaking as any entity or enterprise which is ‘engaged in an economic activity, irrespective of its legal form’. Beyond larger private sector companies, this means ESOS may also apply to Partnerships, Trusts, Universities, and Charities and other not for profit bodies.

Summary of Requirements

To comply with the regulations, a ‘Lead Energy Assessor’ will need to conduct an ESOS Assessment to:

  • Measure your total energy consumption for buildings, industrial processes and transport
  • Identify areas of significant energy consumption, accounting for at least 90% of your total energy consumption
  • Identify cost-effective energy efficiency recommendations for areas of significant energy consumption
  • Report compliance to the Environment Agency

Green Assessors is a lead energy assessor Organisation and are able to sign off ESOS Audit Reports. Download our clear guide to ESOS and contact us to discuss your ESOS requirements.


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