Mar 26, 2024 | All News

In response to the latest government update, there have been some key changes that will significantly influence the approach to ESOS compliance. Below is an overview of the changes.

De minimis Threshold Adjustment:

The de minimis threshold has been redefined, decreasing from 10% to 5%. Unlike the previous compliance periods where participants could exclude a significant portion of their energy supplies, the Phase 3 compliance period mandates 95% of total energy consumption in the report.

Mandatory ESOS Reports:

In the previous ESOS Compliance periods, completing an ESOS report was optional, the third compliance period necessitates all ESOS participants to produce a detailed report. While the minimum content requirements are now set in regulations, this change encourages a more structured and transparent reporting process.

Changes to information in the notification

The information included in notifications has changed. In addition to the existing details, participants are now required to provide a summary of their organisation’s energy consumption and recommendations. While certain elements will be made public to enhance transparency, personal details will remain confidential.

New Online Notification System:

The Government’s new online compliance notification system (MESOS), is currently being rolled out. This system aims to simplify the notification process, offering participants a user-friendly platform to create accounts, undergo verification, and submit information.

ESOS Action Plan and Progress Update:

ESOS Phase 3 introduces additional compliance stages beyond the notification process. Participants will be required to produce an action plan outlining their strategies for reducing energy consumption. This plan, signed off by a board-level director (or equivalent), must be submitted through the compliance notification system by the deadline – December 5, 2024 and needs to include;

  • what the organisation intends to do to reduce energy consumption
  • when they intend to do it
  • whether it was recommended through the ESOS assessment
  • what energy savings they expect to achieve over the four years covered by the action plan
  • how they estimate these savings

Stay Compliant, Stay Ahead!

It’s important for businesses to stay ahead and informed. Choosing Carbonxgen can ensure a smooth transition through these changes. Contact us today to start your ESOS journey.