ESOS Penalties

Financial Costs of Non-Compliance

There’s a fixed penalty of up to £50,000 if you don’t comply – and you can be charged an additional £40,000 in daily penalties for failure to notify compliance. Your non-compliance will also be made public, so you’ll be named and shamed. Further discretionary penalties apply.

The fines are higher than the cost of the audit, so you may as well do the audit – and reap the benefits!

The environmental regulator is responsible for compliance and enforcement activities. The regulator may issue civil sanctions including some or all of the financial penalties if an organisation does not meet the scheme’s obligations:

  • failure to undertake an ESOS Assessment incurs a penalty of up to £50,000 and an additional £500 per day per site (up to a maximum of 80 days)
  • failure to notify the Scheme Administrator incurs a penalty of up to £5,000 and an additional £500 per day per site (up to a maximum of 80 days)
  • failure to maintain adequate records to demonstrate compliance incurs a penalty of up to £5,000 and an additional £500 per day per site (up to a maximum of 80 days)
  • failure to comply with an enforcement, compliance or penalty notice incurs a penalty of up to £5,000 and an additional £500 per day (up to a maximum of 80 days)
  • making a statement which is false and misleading incurs a penalty of up to £50,000 and publication of details of non-compliance.

NB: The public disclosure of non-compliant organisations and details of non-compliance may well involve substantial reputational damage.

Exemptions
There are no exemptions from the scheme, however you could satisfy the requirements without an Audit if all your significant energy consumption is covered by ISO 50001-certified energy management systems , or Green Deal Assessments, or current Display Energy Certificates (DEC).

Get in touch with Ivy Link Partnership to see how we can help your business comply with the ESOS scheme and avoid ESOS penalties as well as make energy savings for your organisation.