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  • Our experts process over 93,000 invoices per month and we've recovered over £11m in over-charges for our clients in the last year
  • We provide support to over 500 businesses for energy and carbon management
  • Our solutions team have identified savings of £37.5m per annum for our clients, a total of 495,338,992 kWh savings identified
  • Last year we saved our CCA clients alone £25.5m

ESOS Phase 2: Why start now?

As the next ESOS compliance deadline isn’t until 5th December 2019, ensuring that you have an effective energy management strategy in place might not be at the top of your to-do list. But, if you’re one of the 10,000 organisations that will need to have completed the whole process again by the Phase 2 deadline, it’s a good idea to get started now.

What is ESOS?

A scheme implemented by Government, the ESOS Scheme (Energy Savings Opportunity Scheme) is a compulsory assessment of a large UK business’ energy consumption and savings. The Government has set out to reduce energy consumption by 20% by 2020 and first introduced the scheme in July 2014.

We are now in Phase 2 of four phases. Each phase lasts four years. The next compliance date for ESOS Phase 2 is 5th December 2019.

Businesses who meet the ESOS Assessment criteria will have to measure their total energy consumption across their entire business, including transport, buildings and industrial activities. Energy audits will need to be conducted in order to improve and promote the business’ energy efficiency.

It is estimated by Government that the scheme could lead to *£1.6bn net benefits to the UK alone, but with most of the energy savings directly benefitting UK businesses. Since the roll out of Phase 1, Inenco has helped over 300 of its clients with ESOS compliance.


ESOS Phase 2: Maximise the Financial Benefits through ESOS Phase 2

The cost of energy has risen by 70% over the past decade and is forecast to rise a further 25% over the next three years. Energy prices have the potential to be incredibly volatile and by 2020, non-commodity elements could account for around 60% of your electricity bill, overtaking the cost of wholesale energy. You can see how your business will be impacted here.

By starting the ESOS Phase 2 process now you will have the opportunity to gather information in preparation for the deadline of 5th December 2019, which could be easier on your business and your budget, rather than compiling it in retrospect. In addition, by implementing recommendations from your ESOS report, you can improve your organisation’s energy efficiency and therefore achieve financial savings to offset the upcoming incremental costs.

Starting early also enables you to understand and consider all routes to ESOS compliance, such as ISO50001, which can take some time to implement but many businesses reap the benefits.

It is also worth noting that quality Lead Assessors are in short supply. It has recently been reported that there is only one Lead Assessor for every 10 organisations. Ensure you are working ahead of your competitors to comply pre-deadline – don’t get caught out waiting for a Lead Assessor!


Failure to comply: Phase 1 was conducted between 31st December 2014 and 5th December 2015, however, many companies did not comply with the scheme by the set deadline.

For those companies who failed to comply during Phase 1, many are now facing significant penalties and will now need to comply within Phase 2 regardless of their issued penalty.

A staggering 40% of organisations still weren’t compliant 4 months after the Phase 1 deadline. Make sure you act early to avoid a penalty for Phase 2.


How Inenco can help

Outsourcing ESOS compliance has many benefits. Inenco have supported over 300 organisations with their ESOS Phase 1 journey and we have carried out more energy surveys than any other independent consultant in the UK. Our packaged approach provides full legislative compliance along with expertise to implement energy savings at no initial cost.

We will work through the process and be with you every step of the way to ensure your business is ESOS compliant, as well as unlocking your potential energy efficiency cost savings.

If you would like to receive support from our ESOS experts, please get in touch on 08451 46 36 26 or email