Energy saving scheme

What is the ESOS scheme?

What is the ESOS scheme?

“What is the ESOS scheme?” is a question we are getting asked more and more these days.

The Energy Savings Opportunity Scheme (ESOS) is an energy assessment and energy saving scheme and is established by the Energy Savings Opportunity Scheme Regulations 2014 (ESOS Regulations).

ESOS applies to large businesses and groups in the UK who qualify within set criteria.

You must take part in ESOS if your organisation qualifies as a large undertaking on the qualification date. The qualification date for the first compliance period is 31 December 2014.

What is the ESOS scheme qualification criteria?

A qualifying large business is any UK business that meets either one or both of the conditions below:
• it employs 250 or more people
• it has an annual turnover in excess of 50 million euro (£38,937,777), and an annual 
balance sheet total in excess of 43 million euro (£33,486,489)

You also must take part in ESOS if your business is part of a corporate group which includes another UK undertaking that meets either of these conditions.

Where a corporate group participates in ESOS, unless otherwise agreed the highest UK parent will act as a ‘responsible undertaking’ and be responsible for ensuring the group as a whole complies.

So what is the ESOS scheme qualifying business definition? It includes an overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK). The UK registered establishment of an overseas company will also need to take part in ESOS, regardless of its size, if any other part of its global corporate group activities in the UK meets the ESOS qualifying criteria

The type of work that your organisation carries out and the amount of energy your organisation uses are irrelevant to whether you qualify for the scheme.

If you would like further information on ESOS and help with assessing how it might affect your business, please do not hesitate to contact us.