Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Energy Savings definition

What does Energy Savings mean? In legal practice, energy savings describes either: (i) energy‑efficient products or systems that minimise electricity, gas or other energy use; or, more commonly, (ii) the quantified reduction in energy consumption delivered by energy efficiency measures. It is a descriptive term used across contracts, regulation and finance. In Ireland, the EU Energy Efficiency Directive defines energy savings as the amount of saved energy determined by measuring or estimating consumption before and after implementing one or more energy efficiency improvement measures, with normalisation for external conditions. In the UK, there is no single statutory definition; scheme rules (for example, the Energy...

ESOS in the UK: administration, compliance phases, enforcement powers, civil penalties and appeals

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Practice notes

Energy Savings Opportunity Scheme (ESOS)

ESOS is a programme for energy assessment and efficiency savings. It applies on a compulsory basis to entities that satisfy the eligibility criteria, namely large undertakings and their corporate groups. Its origin is the EU Energy Efficiency Directive 2012/27/EU, art 8(4)–(6), which oblige EU Member States to ensure that enterprises which are not small and medium enterprises (SMEs) undergo an energy audit at least once every four years. For further detail, see Practice Note: Energy Efficiency Directive 2012/27/EU—snapshot [Archived]. The obligations in art 8(4)—(6) of the Energy Efficiency Directive were implemented in the UK through the Energy Savings Opportunity Scheme Regulations 2014, SI 2014/1643 (the ESOS Regulations). Those Regulations were made on 24 June 2014 and came into force on 17 July 2014. With effect from 26 October 2015, modest amendments were introduced by the Energy Savings Opportunity Scheme (Amendment) Regulations 2015, SI 2015/1731, and by the Energy Savings Opportunity Scheme (Amendment) (EU Exit) Regulations 2018, SI 2018/1342. The Energy Act 2023 confers powers to make necessary post-Brexit changes to ESOS, and the Energy Savings Opportunity Scheme (Amendment) Regulations 2023, SI 2023/1182, implemented changes in advance of the Phase 3 compliance deadline. Organisations that qualify...

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