ESOS Phase 4: benefits of early ESOS compliance

ESOS Phase 4 runs until 5th December 2027. Early compliance can deliver significant financial and operational benefits. Did you know you can act now? This gives Energise ESOS Lead Assessors the best chance to generate return on investment (ROI).

Maximise the benefit of SECR for your business. Use it to save energy and cut costs.

In ESOS Phase 3, our ESOS Lead Assessors identified an average of 9.4 GWh in energy savings per customer. This was well above the industry average of 6.6 GWh. These savings translate into substantial cost reductions and improved sustainability performance.

Can your business afford to wait?

By starting ESOS Phase 4 compliance early, you can:

        • Capture greater energy savings
        • Spread implementation costs over time
        • Avoid last-minute compliance pressure
        • Strengthen your sustainability credentials

What is ESOS Phase 4?

ESOS is a mandatory energy assessment and savings scheme for large UK organisations. It was introduced in 2015 as part of the UK’s implementation of the EU Energy Efficiency Directive. ESOS has remained in place and continues to evolve. Phase 4 runs until 5th December 2027.

What is ESOS for?

ESOS helps businesses:

  • Understand their energy usage
  • Identify opportunities to reduce energy consumption
  • Improve overall energy efficiency across operations

ESOS typically includes electricity and gas. It can cover other fuels (petrol, diesel, and oil).

ESOS Compliance criteria

Your organisation must comply with ESOS if it meets any of the following criteria:

  • Employs 250+ people
  • Has an annual turnover exceeding £44 million and a balance sheet total over £38 million

If any one company within a group structure meets the criteria, the entire group must comply.

Not sure if your business qualifies? Get in touch—our ESOS Lead Assessors will be happy to advise on eligibility.

Benefits of early ESOS Phase 4 compliance

Save money through ESOS

During ESOS Phase 3, Energise ESOS Lead Assessors identified more than £71m of energy savings. Whilst financial savings are not guaranteed, the majority of Energise customers identify improvements. For example:

        • Organisation has a £1m energy bill
        • 17% energy savings identified (our Phase 2 average)
        • 6 month audit delay could lead to an £85,000 loss of savings.

There are lots of quick wins to save energy. Saving energy reduces your carbon emissions. That’s why our ESOS Lead Assessors provide an enhanced audit aligning with Net Zero pathways. Use ESOS as a driving force rather than a compliance exercise. 

Use compliance to prepare for Net Zero

Starting or progressing your Net Zero journey has never been more important. For many companies, complying with ESOS Phase 4 will add value. Once done, we can support you to look at wider carbon emissions and build a Net Zero strategy. We provide detailed reports for each site/fleet audit we complete. Each has an in-depth assessment of available data including:

  • costed opportunities to reduce energy and carbon
  • an assessment of renewable opportunities available
  • a summary of offsetting requirements to achieve Net Zero (for Scope 1 & 2 emissions).

Our audits are bespoke to your business. We don’t use average pathways, we tailor recommendations to your business. For more information on what’s involved in an ESOS audit, see: What is an ESOS audit?

Demonstrate your sustainability commitment with ESOS

There is ever-increasing demand from investors and consumers for sustainability impact. The Net Zero transition provides an opportunity to demonstrate credentials and action. Sustainable action can also attract and keep talent. 66% of UK employees want to work for a company striving for positive impact. 45% of employees report considering resignation if company values misalign with their own.

ESOS Phase 4 compliance is compulsory

For ESOS Phase 4 it’s been made clear that there won’t be any room for delays in submissions. Failure to comply may result in a fine up to £5,000, plus £500 for each working day they remain in violation.

Secure your energy audit early

ESOS Lead Assessors are essential for compliance. We recommend booking an early energy audit to secure the experts you want. We delivered audits for 71 companies in ESOS Phase 3. That’s 1% of energy audits. We delivered 1.32% of total identified energy savings and 1.48% of the financial savings.

With six in-house ESOS Lead Assessors, we are the experience you need. We are well-positioned to support you and excited to join you on the journey.

Ready to get started? Visit our FAQ page or get in touch at hello@energise.com and our expert team will be happy to answer your questions and discuss the next steps.

Sources:

    1. Net Positive Employee Barometer

    2. Environment Agency ESOS Phase 3 dataset

Written By    Liz Taylor

Energise Energy Consultants

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