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 (UK): Qualification thresholds; group structures and highest parent groups (CA 2006); disaggregation; overseas undertakings, trusts, joint ventures and franchises; compliance phases and post‑Brexit changes

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Practice notes

The Energy Savings Opportunity Scheme (ESOS)

ESOS is a statutory programme for energy assessments and savings, mandatory for organisations that meet the eligibility criteria. It originates from the EU Energy Efficiency Directive 2012/27/EU, art 8(4)–(6), which requires Member States to ensure that enterprises other than small and medium-sized enterprises (SMEs) undergo an energy audit at least once every four years. For further information, see Practice Note: Energy Efficiency Directive 2012/27/EU—snapshot [Archived]. The UK implemented art 8(4)–(6) via the Energy Savings Opportunity Scheme Regulations 2014 (SI 2014/1643). Post-Brexit, the Energy Act 2023 provided powers to update ESOS, and the Energy Savings Opportunity Scheme (Amendment) Regulations 2023 (SI 2023/1182) introduced revisions ahead of the Phase 3 compliance deadline. Qualifying organisations must carry out an assessment and audit of their total energy consumption. In most circumstances the audit must be performed or reviewed by a ‘lead assessor’, who is a member of a professional body approved by the Environment Agency (EA), the scheme administrator. For more details, see Practice Note: Energy Savings Opportunity Scheme (ESOS)—ESOS...

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Web page updated on 21/05/2026

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