ESOS Phase 2 Begins as Non-Compliant Businesses Face Fines

June 22, 2017

The Environment Agency (EA) has revealed that hundreds of businesses could soon be hit with financial penalties for failing to comply with Phase 1 of the mandatory Energy Savings Opportunity Scheme (ESOS). Originally introduced in 2014, the deadline for eligible companies in the UK – expected to be around 10,000 ‘large’ organisations – to submit phase 1 of the ESOS audit was on 29th April 2016, extended from the original date of 5th December 2015.

It is reported that over 500 businesses have failed to comply and have since been sent enforcement notices, where hundreds of other businesses incorrectly claimed that they do not qualify for the scheme and are now likely to receive financial penalties.

With Phase 2 of ESOS now under way, businesses can begin carrying out their 12 month energy audit with the deadline for submitting their reports on 5th December 2019. With Brexit on the horizon, many businesses may take the stance that the ESOS reporting no longer applies, given that it was introduced by the European Commission’s 2012 Energy Efficiency Directive. However, the EA have confirmed that ESOS will remain and all businesses must continue to comply.

ESOS may be seen by businesses as a red tape burden, however, these audits will lead companies to identify areas of improvement where energy efficiency measures – such as solar PV and battery storage – can save thousands of pounds every year on energy costs, with the added benefit of reducing carbon emissions.

For more details on how the above technologies can help your business save energy and reduce your bills, please get in contact with EvoEnergy.

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