BEIS - ESOS Phase 3 Update

13/01/2023

BEIS have published their consultation response regarding changes to ESOS for Phase 3 & 4. These changes are set out below.

Regulations for the Phase 3 changes are intended to be brought into force ahead of the 5 December 2023 compliance deadline. BEIS and the Environment Agency will work with Professional Bodies, assessors and participants as they move towards this.

These changes 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 minimise 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

It should be noted that implementation of these requirements is subject to the Parliamentary timetable and scrutiny of the necessary primary and secondary legislation.

The remainder of the changes set out in the government response will be introduced in Phase 4, including the new requirements for net zero which will be based on the ESOS PAS currently under development.