ENERGY INSIGHTS
Who qualifies for ESOS Phase 4?
You qualify for ESOS Phase 4 if on 31 December 2026 your organisation:
- Employs 250+ employees, or
- Has an annual turnover above £44m and a balance sheet total above £38m
- Registered or operating in the UK
The purpose of ESOS is to identify tailored, cost‑effective measures that reduce energy consumption and cut carbon and operational costs. While audits require investment, the savings from implementing recommendations typically outweigh the initial cost.
ENERGY INSIGHTS
What’s new in Phase 4?
Mandatory net zero reporting has now been postponed to Phase 5 (2027–2031). However, key changes still apply:
- DECs and Green Deal Assessments can no longer be used to comply.
- Valid compliance routes are now ESOS‑compliant energy audits or ISO 50001 certification.
- Businesses must report on their Phase 3 Action Plan commitments in the Phase 4 assessment.
- Any unimplemented measures must include explanations within the audit.
- Additional changes may still be implemented ahead of compliance deadlines.
ENERGY INSIGHTS
What are the key dates?
- Action Plan (Phase 3) – 5th March 2025
- 1st Progress Update – 5th December 2025
- 2nd Progress Update – 5th December 2026
- ESOS Qualification Date – 31st December 2026
- ESOS Phase 4 Submission – 5th December 2027
Annual reporting against Action Plans continues until December 2027!
ENERGY INSIGHTS
What are the Non-Compliance Penalties?
Missing the deadline can result in a fine of £5,000 to £50,000, plus a daily penalty of £500 for continued non-compliance, up to £40,000. This means the total penalty could reach £90,000, along with public disclosure of the civil penalties issued.
The most common reason for missing ESOS deadlines is not getting audits and reports completed in time, more reason to start the audit process early.
The ESOS Phase 4 Compliance Period runs from 6th December 2023 and the deadline for submission is 5th December 2027.
The important consideration here is the compliance period which allows you to complete audits at anytime from January 2024. Typically, during ESOS Compliance Periods there is a significant demand for auditors and lead assessors the closer to deadline we get. It’s never too early to get started with site audits while there is good availability!
ENERGY INSIGHTS
How can Synapsys help?
With accredited ESOS Auditors and an experienced in‑house compliance team, Synapsys Solutions provides expert support throughout your ESOS journey.
- Audit Expertise - Our Energy Services team ensures clients meet registration and audit requirements on time.
- Submission Support - We guide businesses from initial assessments through to successful ESOS submission.
- Decarbonisation Solutions - Beyond compliance, we offer practical solutions to reduce carbon emissions and optimise energy performance.
ESOS is not just a regulatory requirement — it’s an opportunity to improve efficiency, lower costs, and support your sustainability goals.
Talk to Synapsys now to discover how an early start on ESOS Phase 4 Audits can potentially save you money and time.
Ready to take control of your energy strategy?
Whether you’re looking to optimise performance, strengthen compliance or progress towards net zero, our team is here to help.
Get in touch: energyinsights@synapsys-solutions.com
Call: 01444 246 128