ESOS Phase 3

As stated in our previous article, which covers ESOS Phase 2 in detail, we have successfully entered Phase 3 of ESOS Energy Compliance, which just ended on 6 August 2024.

As we all know, ESOS compliance needs to be achieved every four years, with Phase 3 covering the period from 6 December 2019 to 5 December 2023.

The final deadline for this phase was on 6th August 2024. However, registration onto the IT system must occur by 5 June 2024.

Organisations can achieve compliance by:

• Conducting energy audits regularly
  
• ISO 50001 certification
• Display energy certificates
• Green Deal assessments

To achieve compliance with ESOS Phase 3, organisations need to assess their energy usage across all their operations, including buildings, transportation, and industrial processes.

So, how do we achieve Phase 3 compliance?

The first step is to hire a trusted and qualified Lead ESOS Assessor. Your Lead Assessor plays an important role in the assessment process, deciding on the best route to achieve compliance and then overseeing the process to ensure it is in accordance with regulations.

What has changed with ESOS Phase 3?

ESOS Phase 3 has introduced several key enhancements. These changes aim to improve the scheme's effectiveness in promoting energy efficiency and reducing carbon emissions. Some of the key changes and improvements include:

• Identify areas of significant energy consumption: In the first and second compliance periods, ESOS participants could exclude up to 10% of their energy supplies and report on 90%. In the third compliance period, this has been changed to an up to 5% exclusion, and at least 95% of total energy consumption must be included.

• Energy data intensity ratios: An energy intensity ratio must be calculated for building, transport, and process energy use. By analysing these ratios, participants can identify areas of high energy consumption relative to key performance indicators.

• Energy consumption data: Companies need to submit details of their energy data as part of the ESOS submission.

• ESOS action plan: Set out an action plan for future energy-saving measures. This should include what you intend to do to reduce energy consumption and when you intend to do it. Similar to the ESOS report, the action plan must be signed off by a board-level director and submitted by the action plan deadline of December 2024.

• Annual progress updates: Participants should submit annual progress updates against the action plan one year after submitting it.

• Enhanced enforcement measures: ESOS Phase 3 introduces strengthened enforcement measures and penalties for non-compliance to ensure greater accountability and compliance. Regulatory authorities have ramped up monitoring efforts and are empowered to impose significant fines and sanctions.

With the above changes for Phase 3, the ESOS scheme can potentially play a bigger role in decarbonising the built environment and meeting the UK’s climate goals, including the commitment to achieve net zero greenhouse gas emissions by 2050.  

If you are looking for an ESOS Phase 3 complaint, please connect; we can help get rolling on this process. Contact Pro Enviro at 01788 538150.