The Energy Savings Opportunity Scheme (ESOS) is undergoing significant updates as it progresses into Phase 4.
These changes are poised to enhance the scheme’s effectiveness in driving energy efficiency and aligning with the UK’s broader climate goals.
Here, we delve into the anticipated changes, including the introduction of net zero assessments, alignment with SECR criteria, mandatory action on recommendations, adherence to auditing standards, and the phasing out of DECs and GDAs.
Net Zero Assessments: A New Focus
One of the most significant introductions in Phase 4 is the requirement for net zero assessments.
These assessments will help organisations identify the necessary steps to align with future net zero commitments.
The aim is to evaluate potential business risks associated with the transition to net zero and to suggest emission reduction trajectories that do not compromise future pathways.
A new net zero audit PAS (Publicly Available Specification) standard is currently in development to support this requirement.
This standard will provide a structured approach to conducting net zero assessments, ensuring that organisations can effectively plan and implement strategies to achieve their net zero targets.
By focusing on long-term sustainability, these assessments will help businesses future-proof their operations against the evolving regulatory landscape and market demands.
Alignment with SECR Criteria
Another anticipated change in Phase 4 is the adjustment of ESOS eligibility criteria to match those of the Streamlined Energy and Carbon Reporting (SECR) framework.
The criteria will now include organisations with 250 or more employees, a balance sheet exceeding £18 million, or an annual turnover of over £36 million.
This alignment simplifies compliance requirements and broadens the scope of businesses contributing to energy efficiency and carbon reduction efforts.
By synchronising with SECR criteria, ESOS Phase 4 aims to create a more cohesive regulatory environment, reducing the administrative burden on businesses and encouraging a more comprehensive approach to energy management across the UK.
Mandatory Action on Recommendations
A pivotal shift in Phase 4 will be the mandatory implementation of audit recommendations. Previously, organisations were only required to identify energy-saving opportunities.
Under the new rules, if targets are not met, participants must provide explanations for their non-compliance.
This ensures a transition from merely identifying opportunities to actively implementing energy-saving measures.
This change is expected to drive significant improvements in energy efficiency and carbon reduction.
By holding organisations accountable for their energy performance, Phase 4 aims to create tangible environmental benefits and support the UK’s commitment to reducing greenhouse gas emissions.
Auditing Standards Requirement
To ensure the quality and reliability of energy audits, ESOS reports in Phase 4 will be required to adhere to recognised auditing standards such as ISO 50002 or EN 16247.
These standards provide a structured approach to energy auditing, ensuring consistency and accuracy in the identification and reporting of energy-saving opportunities.
Adherence to these standards will enhance the credibility of ESOS assessments, giving stakeholders greater confidence in the reported findings and the proposed energy-saving measures.
Phasing Out DECs and GDAs
Finally, Phase 4 will see the phasing out of Display Energy Certificates (DECs) and Green Deal Assessments (GDAs) as compliance routes.
This change aims to refine the focus of ESOS towards more rigorous and standardised energy efficiency evaluations.
By removing these alternative compliance routes, ESOS will concentrate on delivering high-quality, actionable insights that drive meaningful improvements in energy performance.
How TEST Consulting Can Help
Navigating these changes can be challenging, but TEST Consulting is here to help. Our expertise in energy efficiency and market intelligence positions us to provide comprehensive support for your ESOS requirements.
We offer:
Net Zero Assessments: Our team can conduct thorough net zero assessments to help you plan and implement effective emission reduction strategies.
Compliance Support: We ensure your organisation meets the new SECR-aligned criteria and help with mandatory implementation of audit recommendations.
Quality Auditing: We adhere to recognised auditing standards, providing reliable and credible ESOS reports.
Implementation Assistance: From planning to execution, we support you in implementing energy-saving measures to achieve your sustainability goals.
Contact TEST Consulting today to learn more about how we can assist you in navigating Phase 4 of ESOS and achieving your energy efficiency and net zero targets.
Tel: 0113 467 7650
Email: info@test-consulting.co.uk