ESOS Phase 3: Compliance for Energy Savings

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What is ESOS Phase 3?

ESOS Phase 3 is a program aimed at encouraging large organisations based in the UK to implement energy-saving measures. This scheme mandates companies to conduct audits every four years, assessing the energy usage of their buildings, processes, and transportation.

These audits must cover 95% of your organisational energy and require sign-off from a qualified ESOS Lead Assessor. Routes to compliance include ESOS audits, Display Energy Certificates (DECs), Green Deal energy assessments, and ISO 50001 certification.

We are currently in Phase 3 of the ESOS scheme, with a deadline for completing and reporting audits to the Environment Agency by 5 June 2024. The long-awaited outcome of the ESOS consultation was released in July 2022, introducing changes to Phase 3 that organisations need to comply with, including the announcement of a Phase 4.

Who needs to comply with ESOS?

Public bodies are not affected. Large organisations that must comply are classified as those with:

  • More than 250 employees or
  • An annual turnover in excess of £44 million, and an annual balance sheet total in excess of £38 million

Outcome of the ESOS Phase 3 Consultation

The UK Government released the outcome of the ESOS Phase 3 consultation in July 2022. Here are some of the key additions to Phase 3 that organisations should be aware of:

  • Introduction of standardised reporting to enhance audit quality. Assessors will be required to use a new template developed in collaboration with stakeholders, which will be made available in a timely manner for participants to make the necessary adjustments to their reporting.
  • Proposal for a standardised ESOS recommendations template structure and required data will also be implemented.
  • Emphasis on energy data analysis in reporting, where available.
  • ESOS reports must contain an overall energy intensity metric in the overview section of the report. This metric will be expressed as kWh/m2 for buildings, kWh/unit output for industries, and kWh/miles travelled for transportation.
  • Requirement to set a target or action plan to be submitted after Phase 3, which organisations will need to report on during Phase 4.


Savvy businesses can save time and hassle by using our exclusive compliance package. As well as saving you time and hassle we also offer you a 10% discount if you sign up for a joint 5 year ESOS and Streamlined Energy and Carbon Reporting (SECR) package.

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