Strengthening the Energy Savings Opportunity Scheme (ESOS)
Download the full outcome
Detail of outcome
The government response to this consultation sets out a summary of feedback received, and the decisions made by the UK government, on the following proposals for the Energy Savings Opportunity Scheme (ESOS):
- improving the quality of audits through increased standardisation of reporting requirements
- the inclusion of a net zero element to audits
- requiring public disclosure of high-level recommendations by participants
There was widespread support across the groups of respondents for the proposals, which aim to increase the energy and carbon savings from businesses who participate in ESOS. On 19 July 2022, the government announced its intention to include powers to make the necessary changes to the scheme in the Energy Bill via a government amendment. Subject to the necessary Parliamentary scrutiny and scheduling including seeking views from the devolved administrations, the government intends to implement some of the changes in advance of the current Phase 3 compliance deadline, and others, such as adding a net zero audit element, in Phase 4.
The proposals to be adopted in Phase 3 on a mandatory basis are set out in the response to questions 2, 3, 8, 15, 20 and 21 in the government response and relate to:
- a standardised template for including compliance information in the ESOS report, generally comprising ESOS information the participant should already have available
- the reduction of the 10% de minimis exemption to up to 5%
- the addition of an energy intensity metric in ESOS reports
- requirement to share ESOS reports with subsidiaries
- requirement for ESOS reports to provide more information on next steps for implementing recommendations
- requirement for participants to set a target or action plan following the Phase 3 compliance deadline, on which they will be required to report against for Phase 4
- collection of additional data for compliance monitoring and enforcement
The document also sets out a summary of feedback received on 2 further options, which will inform developments in future phases:
- extending the scope of the scheme to include medium-sized businesses, not already part of a corporate group containing a large business
- mandating action on audit recommendations
There was support for these options, but respondents also highlighted issues that would need to be addressed before they could be implemented in future phases of ESOS. The government will work with stakeholders on the detail of any potential future implementation of these options, which would be subject to further consultation.
An updated Impact Assessment will be published when the legislative powers for the measures are introduced in Parliament.
Detail of feedback received
We received 89 responses to this consultation, split as follows:
- consultants (31%)
- ESOS participants (22%)
- trade associations (21%)
- lead assessors (8%)
- professional bodies (7%)
- others (10%)
Original consultation
Consultation description
This consultation seeks views on proposed measures to strengthen the Energy Savings Opportunity Scheme to improve the uptake of energy efficiency measures, and increase the benefits for participating businesses.
It follows on from the 2020 Post-Implementation Review of the scheme and welcomes views on the following options to improve the scheme:
- improving the quality of audits through increased standardisation of reporting requirements
- the inclusion of a net zero element to audits
- requiring public disclosure of high-level recommendations by participants
We are also seeking views and evidence on 2 additional options to improve the scheme, potentially in the longer term:
- extending the scope of the scheme to include medium sized businesses
- mandating action on audit recommendations
Read the associated research, Net zero audits: state of the market and the potential to drive action
Read the BEIS consultation privacy notice.
Please don’t send responses by post to the department at the moment as we may not be able to access them.
Documents
Last updated 28 July 2022 + show all updates
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Government response published.
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First published.