Expert Help to Avoid or Manage Fines after the ESOS Deadline

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If your business has received an ESOS fine or an enforcement notice from the Environment Agency (EA), you’re not alone. The compliance period for ESOS Phase 3 officially ended on 6 August 2024, and the EA has now started issuing penalties to organisations that missed the deadline.

While the fines can be significant, it’s not too late to act — our energy consultancy can help you get back on track.

What Is ESOS and Who Needs to Comply?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory UK-wide energy assessment scheme enforced by the Environment Agency. Its goal is to help large organisations identify cost-effective opportunities to reduce energy use and carbon emissions.

ESOS applies to businesses that meet one or more of the following criteria:

• 250 or more employees, or

• Annual turnover exceeding £44 million, and

• Annual balance sheet total over £38 million

The Phase 3 notification of compliance was due by 6 August 2024, and the Action Plan deadline was 6 March 2025.

Penalties for Missing the ESOS Deadline  

The Environment Agency has wide enforcement powers and has already begun taking action against companies that have failed to meet their ESOS obligations.

Here’s what you could be facing:

• Fixed Penalty: Up to £50,000 for failing to complete an energy audit

• Daily Penalty: £500 per day of non-compliance (up to 80 working days = £40,000)

• Record Keeping Penalty: Up to £5,000 for failing to maintain accurate records

• Public Naming: Non-compliant organisations may be named and shamed on the EA’s website

• Enforcement Notices: Formal instructions requiring organisations to achieve compliance within a set timeframe

Total potential fines can reach up to £90,000 depending on the duration and nature of the breach.

What Does an ESOS Energy Assessment Involve?

An ESOS assessment provides a detailed picture of how your organisation uses energy and where you can save it.

To comply, businesses must:

• Measure 12 months of total energy consumption (buildings, processes, transport)

• Identify significant areas accounting for over 95% of total use

• Conduct energy audits to identify cost-effective energy-saving measures

• Appoint a qualified Lead Energy Assessor to review and verify the assessment

• Submit compliance notification via the EA’s online portal

How We Can Help You Achieve Compliance

If you’ve missed the ESOS deadline or received an Environment Agency fine, don’t wait — professional help can make a huge difference.

Working with an experienced energy consultancy like Professional Energy People helps you demonstrate active engagement with the EA — often reducing further penalties and ensuring your business becomes compliant as quickly as possible.

1. ESOS Eligibility Review

We start by verifying whether your organisation is genuinely obligated to comply. Sometimes, corporate structure or financial arrangements can affect eligibility.

If we find that your company is exempt, we’ll prepare documentation to inform the EA and request withdrawal of enforcement.

2. Full ESOS Management and Representation

If you are required to comply, we’ll handle everything from start to finish:

• Energy audits to identify practical, cost-effective efficiency measures

• Detailed reports with payback periods, carbon savings, and investment opportunities

• Lead Assessor verification by our in-house expert Jason Martin, an approved ESOS Lead Assessor registered with the Energy Managers Association (EMA)

We’ll liaise directly with the Environment Agency, submit your documentation, and ensure your compliance is complete.

Why It Pays to Act Quickly

Taking swift action after receiving an ESOS enforcement notice not only demonstrates your intent to comply but can also reduce the likelihood of further fines.

Beyond avoiding penalties, the energy-saving recommendations from your audit can deliver lasting value:

• Lower operational and energy costs

• Reduced carbon footprint

• Enhanced sustainability credentials

• Improved corporate image

Even if your company doesn’t meet ESOS criteria, voluntary energy audits can still identify valuable efficiency opportunities.

Looking Ahead to ESOS Phase 4

The next compliance phase has already begun.ESOS Phase 4 runs from 6 December 2023 to 5 December 2027, with the compliance notification due by 5 December 2027.

Getting started early ensures your business avoids future fines and is fully prepared for the next round of reporting.

Don’t get caught out, get ready.

Contact us for help with your ESOS submission.

info@pepgb.com

0330 0022180