A water procurement site, underlining the broad spectrum of industries, including water services, potentially subject to ESOS compliance requirements

According to the Energy Savings Opportunity Scheme (ESOS) regulations, certain types of businesses are exempt from compliance.

These include:

  • Small and medium-sized enterprises (SMEs) with fewer than 250 employees and an annual turnover of less than £44 million or an annual balance sheet total of less than £38 million.
  • Public sector bodies: Some public sector bodies are exempt, such as those that are fully funded by government grants, those that provide emergency services, and those that have a low energy use profile.
  • Certain industrial sectors: Some industrial sectors, such as those that are subject to other regulatory energy audits, may be exempt. For example, businesses that are required to carry out regular energy audits under the Industrial Emissions Directive or the Climate Change Agreement may not need to comply with ESOS.


It’s worth noting that even if a business is exempt from ESOS, they may still benefit from implementing energy efficiency measures, as this can help reduce their energy costs and carbon footprint. Additionally, if an exempt business is part of a corporate group that meets the criteria for ESOS, the group as a whole may still need to comply.


Contact our experts today to learn if you need to comply with ESOS Phase 3.