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Is ESOS a legal requirement?

Yes. ESOS is a legal requirement for UK organisations that meet the qualification criteria.

An organisation normally qualifies if it employs 250 or more people, or has both annual turnover above £44 million and a balance sheet total above £38 million. Corporate group rules also apply, so smaller UK undertakings may need to comply if another organisation within the group qualifies.

Qualifying organisations must calculate their total energy consumption and identify the areas that account for at least 95% of it. This energy use must then be covered by an appropriate ESOS compliance route, such as an ESOS energy audit, ISO 50001 certification, or a combination of the available routes.

An approved ESOS Lead Assessor reviews the assessment. Directors must also review and approve the findings before the organisation reports its compliance through the government’s MESOS service.

Organisations that fail to meet their ESOS obligations can face enforcement notices, financial penalties and publication of their non-compliance.

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