Energy Conservation Advantage Plan (ECAP)

The Energy Savings Opportunity Scheme (ESOS) is set to undergo some changes as it enters Phase 4, with the deadline for compliance scheduled for December 5, 2027.

Organizations that have registered for Phase 4, following the postponement of the net zero requirements to Phase 5, are not explicitly listed in the available search results. However, it is important to note that the fourth phase of ESOS officially began in 2025 and involves all suppliers contributing to the scheme costs, with charges administered by the Low Carbon Contracts Company (LCCC) and regulated by Ofgem. Specific organizational participants after the postponement have not been detailed in the provided sources.

Completing an assessment for ESOS now has additional requirements, in line with the 2023 regulations. Upon submission of the action plan, organizations must submit an annual progress update against their action plan commitments in the 2 subsequent years.

The scheme administrator will publish the majority of the information in your compliance notification, with the exception of personal or commercially sensitive details and feedback. The notification of compliance includes details about the organization, how it has complied, energy consumption information, energy savings opportunities that have been identified, and must be submitted using the Managing your system.

The existing competency standard (PAS 51215:2014) will continue to be used as the competency standard for lead assessors for Phase 4. Individuals cannot apply directly to the Environment Agency to be approved as a lead assessor; they must be (or become) a member of an approved professional body register. The list of approved registers for lead assessors includes the Association of Energy Engineers, The Chartered Institution of Building Services Engineers, Elmhurst Energy Systems, Energy Institute, Energy Managers Association, Institution of Chemical Engineers, The Institute of Sustainability and Environmental Professionals, and Quidos.

The qualification thresholds and date for phase 3 have not been changed; phase 3 of the ESOS still applies to all organizations (and their corporate groups) that were classed as large undertakings on December 31, 2022. If an organization is part of a corporate group, it must provide relevant information from the report to all members of the corporate group, as detailed in the Energy Savings Opportunities Scheme (Amendment) Regulations 2023. Before submitting the compliance notification, one board level director or person exercising management control from one of the undertakings in the participant group must sign off on both the assessment and the content of the compliance notification.

The following changes announced in the previous government's response to the consultation are intended to go ahead for Phase 4: removal of Display Energy Certificates and Green Deal Assessments as compliance routes, progress against action plan commitments to be included in the assessment, and where action plan commitments have not been met, participants must provide an explanation.

The deadline for submitting an action plan for the third compliance period passed on December 5, 2024. No remedial actions will be considered for action plans submitted up until March 5, 2025.

On February 7, 2024, the British Standards Institution (BSI) published two new standards (PAS 51215-1:2025 and PAS 51215-2:2025) which can be used on a voluntary basis for compliance.

Any organization that qualified for phase 3 of the ESOS and has failed to submit a notification of compliance is now at risk of enforcement action and should contact the Environment Agency immediately. The published data provided by organizations that submitted a notification of compliance in phases 1 and 2 of the ESOS can be found on the Environment Agency's website.

The Phase 3 guidance will be updated for Phase 4. The compliance deadline for Phase 4 of the ESOS is December 5, 2027. The Energy Savings Opportunities Scheme Regulations 2014, as amended most recently by the Energy Savings Opportunities Scheme (Amendment) Regulations 2023, outline the requirements for compliance.

Organizations must calculate their total energy consumption, identify areas of significant energy consumption, calculate energy intensity ratios, decide on their route(s) to compliance, carry out necessary energy audits, complete the report, notify the Environment Agency, and keep records of how they have complied in an evidence pack. The report must detail the assessment, include information about the compliance route used and what it covers, the energy saving opportunities identified, and energy savings achieved since the previous compliance date.

It is crucial for organizations to stay informed and comply with the updated requirements to ensure they are meeting their energy savings targets and contributing to the UK's carbon reduction goals.