ESOS · enforcement
ESOS penalties: the five breaches, and how a case runs
ESOS penalties are civil, set breach by breach in Part 8 of the ESOS Regulations 2014, and every one of them carries publication.
The statutory ceilings are £45,000 for failing to notify and £90,000 for failing to carry out an energy audit; the Environment Agency then works out an actual figure using Annex 2 of its enforcement policy.
A missed action plan carries no fine at all, and the reason is in the statute rather than in the regulator’s forbearance.
The five breaches
ESOS fines, breach by breach
Each breach is a separate regulation with its own penalty, and the wording of each matters: “up to” on three, a fixed sum “or such lesser amount” on two.
| Reg | Breach | Initial penalty | Daily penalty | Statutory ceiling |
|---|---|---|---|---|
| 43 | Failing to notify compliance under regulation 29 | Up to £5,000 | Up to £500 a working day from the day after the penalty notice, 80 working days | £45,000 |
| 44 | Failing to keep the records regulation 28 requires | Up to £5,000 | None; instead the cost to the regulator of confirming compliance | £5,000 plus that cost |
| 45 | Failing to carry out an energy audit under Chapter 3 of Part 4 | £50,000, or such lesser amount as the regulator determines | Up to £500 a working day from the day after the compliance notice, 80 working days | £90,000 |
| 46 | Failing to provide information or take steps a compliance, enforcement or penalty notice requires | Up to £5,000 | Up to £500 a working day from the day after the penalty notice, 80 working days | £45,000 |
| 47 | A false or misleading statement to the scheme administrator or a regulator | £50,000, or such lesser amount | None | £50,000 |
The regulation 45 penalty is the one that applies when an organisation has not done the work; since 22 July 2026 it does not apply where the ISO 50001 or zero-consumption routes deem compliance, a change made by regulation 29 of SI 2026/701.
The regulation 45 daily penalty runs from the day after the compliance notice, not the penalty notice, so the clock on the most serious breach starts earlier than on the others.
A regulation 44 penalty for records has no ceiling on its second limb, because the cost of confirming compliance is whatever that work costs the regulator.
Fine is the everyday word; the Regulations call these civil penalties, and the Environment Agency’s guidance lists them in section 15.1.
On your facts
The statutory maximum, worked out
The calculator beside this text applies Part 8 to a breach and a number of working days, and shows what the statute allows at most.
It also shows the Environment Agency’s new-entrant approach, which caps the initial penalty for failing to audit at £5,000 in the first period an organisation enters the scheme.
A maximum is not a forecast: regulation 42 lets the regulator waive a penalty, allow more time to pay, impose or substitute a lower penalty, or modify publication.
Where a daily penalty is still running when the notice is served, the notice states the initial amount and the daily rate, and a further notice fixes the total once it is known.
Once the total is fixed, the penalty is due 60 working days after notice is given, and an unpaid penalty is recoverable as a civil debt; the regulator passes any money received to the Secretary of State.
Part 8 of SI 2014/1643 · statutory maxima
Maximum so far: £50,000
Fixed £50,000 + 0 working days × £500 = £0 · statutory ceiling £90,000
The ceiling is not the likely figure.
The Agency’s own worked example takes this £90,000 to a £27,000 starting point, a range of £12,600 to £67,500 and a £47,250 final penalty.
The fixed amount is £50,000 “or such lesser amount as the compliance body may determine”.
Since 22 July 2026 it does not apply where regulation 33(3) or 33A deems compliance.
Every Part 8 penalty also carries publication: the regulator names the undertaking, the requirement breached and the amount.
An indicative reading of SI 2014/1643 regs 41 and 43–47, and the Environment Agency’s enforcement policy Annex 2.
The regulator sets the actual amount; nothing here is advice.
How a case runs
From compliance notice to appeal
An ESOS case usually starts with information, not money: under regulation 35 a regulator may serve a compliance notice asking for what it needs to monitor compliance.
If the reply is missing or, in the regulator’s opinion, incomplete or inaccurate, it may determine the information itself, and that determination can be appealed.
The guidance describes three notice types: a compliance notice is an information request, an enforcement notice tells you what you must do, and a penalty notice imposes the civil penalty.
An enforcement notice under regulation 38 must name the provision breached, what constitutes the breach, the steps to remedy it and the date by which they must be taken.
A penalty notice under regulation 39 must state the breach, the steps to remedy it, the nature of the penalty and how to appeal; a regulation 45 notice can require the undertaking to carry out or complete the ESOS assessment.
It is for the regulator to decide whether to serve any notice at all, and the guidance confirms it may waive or modify enforcement action and penalties.
Which regulator acts depends on the registered office, not on where the sites are; the UK regimes by jurisdiction page sets ESOS beside the other schemes that split the same way.
- reg 35Compliance notice
A written request for the information the regulator needs to check compliance, with a date to reply.
- reg 36Inspection
Premises may be inspected on reasonable notice; records can be required and copies taken.
- reg 37Self-reporting
An undertaking that becomes aware of a breach must notify the scheme administrator.
- reg 38Enforcement notice
States the provision breached, the breach, the steps to remedy it and the date.
- reg 39Penalty notice
Imposes the penalty and the steps, with information about appeals.
- reg 40Payment
Due 60 working days after notice of a fixed total.
- reg 41Publication
At least one year, and not before the appeal period expires.
- regs 48–50Appeal
Error of fact, wrong in law, or unreasonable; the notice is suspended meanwhile.
Annex 2
How the Environment Agency sets the figure
The Regulations set ceilings; the amount actually imposed comes from a published four-step method in Annex 2 of the Environment Agency’s enforcement and sanctions policy, which the GOV.UK ESOS page says other regulators apply in a similar way.
| Step | What happens | In the ESOS worked example |
|---|---|---|
| 1. Statutory maximum | Initial penalty plus the maximum daily penalty | £50,000 + £40,000 (£500 × 80 days) = £90,000 |
| 2. Nature of the breach | Whether the regulator will normally impose a penalty for this breach, and the initial penalty amount | Section D2.4: a penalty will normally be imposed; £90,000 |
| 3. Culpability and size | A starting point and a range, from factors for the organisation’s size and its culpability | Large and negligent: £90,000 × 0.3 = £27,000; range £90,000 × 0.14 to × 0.75 = £12,600 to £67,500 |
| 4. Aggravating and mitigating factors | The figure moves within the range | Final penalty £47,250 |
Size is set by turnover, and Annex 2 says that for ESOS it considers the turnover or equivalent of the participant, with “large” meaning £50 million and over.
That is a different test from the ESOS qualification threshold, so an organisation can be in the scheme on headcount and still fall into a smaller size band for penalties.
Section D2.3 sets out the new-entrant approach: in the compliance period in which an organisation first enters ESOS, the Environment Agency will normally impose a lower initial penalty of up to £5,000 for failing to audit, and in later periods it normally uses the statutory maximum.
“Normally” is the operative word: this is the regulator’s stated approach, and regulation 45 itself is unchanged.
On the record
What one tribunal case actually decided
A 2022 First-tier Tribunal decision reproduces an Environment Agency ESOS penalty notice for a failure to carry out an assessment in the second compliance period, Steps 1 to 4 included.
The notice derived the £90,000 maximum exactly as regulation 45 does, set a £27,000 starting point for a large, negligent organisation and a range of £12,600 to £67,000, and imposed £57,375.
The tribunal found the regulator’s figure unreasonable, allowed the appeal and substituted £28,688.
The top of the range in that notice, £67,000, differs by £500 from the £67,500 in the current Annex 2, which was updated on 10 October 2025; the low end is the same on both.
Neither figure is “the highest ESOS fine”: both are the ceiling of a calculation range, and published lists that call them a recorded penalty have misread them.
Being named
The publication penalty, and where it appears
Every breach in Part 8 carries the publication penalty alongside any financial one.
Regulation 41 defines it as publication, on the scheme administrator’s or another regulator’s website, of the name of the responsible undertaking and, where different, the participant, the details of the breach, and any financial penalty.
It must stay up for at least one year, can stay longer, and cannot take effect until the period for any appeal has expired.
The Environment Agency publishes its record as climate change civil penalties on data.gov.uk, a dataset covering ESOS alongside other climate change schemes.
The GOV.UK ESOS page, as rewritten on 2 September 2026, describes it as a summary of the penalties imposed in England, so it is not a UK-wide record.
The same organisations often report energy publicly elsewhere, in a directors’ report under SECR or, for listed companies in scope of the FCA’s final rules, against UK SRS S2 on a comply-or-explain basis for periods beginning on or after 1 January 2027; the ESOS and SECR comparison shows where the data meets.
The gap in Part 8
No fine for a missed action plan, and why
Part 8 penalises five failures, and none of them is a failure to submit an action plan or a progress update.
The action plan duties sit in regulations 34A and 34B, inserted by the 2023 amendments, and no regulation in Part 8 names either of them; SI 2026/701 amended Part 8 in one place and added no offence.
The Environment Agency’s guidance says the same from the other side: regulators “will not take enforcement action or issue a penalty relating to the non-submission of an action plan or progress update”, and the scheme administrator publishes the failure.
The two statements are not the same claim: one is a gap in the law, the other a statement of policy, and the first is the stronger.
There is one residual route: if a regulator served an enforcement notice requiring a plan, failing to comply with that notice would fall under regulation 46.
The further Phase 3 progress update is due by 5 December 2026, and missing it is published, not fined.
The ESOS action plan and ESOS Phase 3 pages set out what each update contains.
Already late?
What the law asks of an organisation that has missed a date
The first duty is the undertaking’s own: regulation 37(1) requires a responsible undertaking that becomes aware it is in breach to notify the scheme administrator.
The guidance is direct about the deadline: the scheme regulators cannot amend it, and an organisation that cannot notify by the compliance date should contact its regulator.
The work itself does not change because it is late: measure the total, identify the significant areas if you choose to, audit them or rely on a certificate, have a lead assessor review it where one is required, have the responsible officer confirm it, and notify.
In Phase 3 the GOV.UK change log shows the regulator asking organisations that had not notified to do so by 6 August 2024, two months after the extended deadline of 5 June 2024; that was a request, not a new statutory date.
The steps for Phase 4 are set out on the Phase 4 compliance guide, every date on ESOS deadlines, and the audit on ESOS energy audit.
A lead assessor review is part of a late assessment too, unless an exemption applies; the ESOS lead assessor page covers who can act.
Who enforces, and where appeals go
Regulators, appeal bodies and the grounds
| Registered office | Regulator | Appeal goes to |
|---|---|---|
| England | Environment Agency | First-tier Tribunal (General Regulatory Chamber) |
| Wales | Natural Resources Wales | First-tier Tribunal |
| Scotland | Scottish Environment Protection Agency | The Scottish Ministers |
| Northern Ireland | Northern Ireland Environment Agency (the Chief Inspector in the Regulations) | The Planning Appeals Commission |
| Wholly or mainly offshore | Secretary of State for Energy Security and Net Zero | First-tier Tribunal |
Regulation 48 allows an appeal against a determination, an enforcement notice or a penalty notice on three grounds: it was based on an error of fact, it was wrong in law, or it was unreasonable.
Bringing an appeal suspends the notice until the appeal is decided, and the appeal body may cancel it, affirm it with or without changes, or direct the regulator.
The guidance suggests contacting the regulator first if you think a notice was served in error, and each notice says how to appeal.
The instruments behind all of this are set out on the ESOS legislation page.
Check your understanding
Seven statements about ESOS fines, true or false
Most published summaries of ESOS penalties get one of three things wrong: the wording of the two £50,000 penalties, the daily penalty on records, or the status of a missed action plan.
Each answer beside this text names the provision that settles it.
The scheme as a whole is explained on the Energy Savings Opportunity Scheme page, and what is published about compliant organisations on ESOS reporting.
For the regulator’s own description of a compliant assessment, read the ESOS compliance guidance page.
True or false?
01The fine for failing to carry out an energy audit is “up to £50,000”.
02Failing to keep the evidence pack carries a daily penalty.
03The 80-day cap on daily penalties counts working days.
04A missed ESOS action plan carries a fixed fine.
05The publication penalty can run while an appeal is pending.
06Annex 2’s £67,500 is the highest ESOS fine ever imposed.
07A company that discovers it has breached ESOS must tell the scheme administrator.
7 statements.
Pick an answer to see the provision behind it.
Answers rest on the provisions named beside each one.
Nothing you pick is saved.
Frequently asked
ESOS penalties, answered
What are the fines for ESOS non-compliance?
Part 8 of the ESOS Regulations sets five: failing to notify, up to £5,000 plus up to £500 a working day for up to 80 working days; failing to keep records, up to £5,000 plus the cost of checking compliance; failing to carry out an energy audit, £50,000 or such lesser amount as the regulator determines, plus the same daily penalty; failing to comply with a notice, up to £5,000 plus the daily penalty; and a false or misleading statement, £50,000 or such lesser amount.
Every breach also carries publication.
What is the maximum ESOS penalty?
For failing to carry out an energy audit, £50,000 plus £500 for each of up to 80 working days, which is £90,000.
For failing to notify, £5,000 plus the same daily penalty, which is £45,000.
A false or misleading statement carries £50,000 with no daily element.
Is there a fine for a missed ESOS action plan?
No. Part 8 names no penalty for the action plan or progress update duties in regulations 34A and 34B, and the Environment Agency’s Phase 4 guidance says regulators will not take enforcement action or issue a penalty for their non-submission.
The failure is published instead.
If a regulator served an enforcement notice requiring a plan, failing to comply with that notice would be penalised under regulation 46.
Is ESOS non-compliance a criminal offence?
No. The ESOS Regulations create civil penalties, not criminal offences.
The Energy Act 2023 would allow ESOS regulations to create offences, but SI 2014/1643 as amended does not.
How does the Environment Agency decide the amount?
Annex 2 of its enforcement and sanctions policy works in four steps: the statutory maximum, the nature of the breach, a starting point and range from culpability and organisation size, then aggravating and mitigating factors.
In its ESOS worked example a large, negligent organisation that failed to audit has a £27,000 starting point, a £12,600 to £67,500 range and a final figure of £47,250.
What penalty does a new entrant to ESOS face?
Annex 2, section D2.3, says that for new entrants, in the compliance period in which they first enter the scheme, the Environment Agency will normally impose a lower initial penalty of up to £5,000 for failure to undertake an energy audit.
In later periods it normally uses the statutory maximum. This is policy, not statute.
What is the ESOS publication penalty?
Publication on the regulator’s website of the name of the responsible undertaking and, where different, the participant, details of the breach, and any financial penalty.
Regulation 41 requires it to stay up for at least one year and stops it taking effect until the appeal period has expired.
When does an ESOS penalty have to be paid?
Where the total is known when the notice is served, regulation 40 makes the penalty due 60 working days after notice is given.
An unpaid penalty is recoverable as a civil debt.
Can you appeal an ESOS penalty?
Yes.
Regulation 48 allows an appeal against a determination, enforcement notice or penalty notice on the grounds that it was based on an error of fact, wrong in law or unreasonable.
Appeals go to the First-tier Tribunal for notices from the Environment Agency, Natural Resources Wales or the Secretary of State, to the Scottish Ministers for SEPA, and to the Planning Appeals Commission for Northern Ireland.
Bringing an appeal suspends the notice.
What happens if we miss the ESOS deadline?
Regulation 37(1) requires a responsible undertaking that becomes aware of a breach to notify the scheme administrator, and the guidance says to contact your regulator if you cannot notify by the compliance date.
The regulators cannot move the deadline.
Regulation 42 lets a regulator waive a penalty, impose a lower one or modify publication.
Sources
Primary sources
Every figure, date and status on this page traces to the instrument’s owner.
Secondary commentary is never the source for a number.
- legislation.gov.ukSI 2014/1643, Part 8 — civil penalties and breaches (regs 39–47)
The five breaches, their maxima, payment and publication.
- legislation.gov.ukSI 2014/1643, Part 7 — compliance and enforcement (regs 35–38)
Compliance notices, inspection, the duty to report a breach, enforcement notices.
- legislation.gov.ukSI 2014/1643, Part 9 — appeals (regs 48–51)
Grounds of appeal, the appeal bodies and the suspension of a notice pending appeal.
- legislation.gov.ukThe Energy Savings Opportunity Scheme Regulations 2014 (SI 2014/1643)
The instrument as a whole.
- legislation.gov.ukThe Energy Savings Opportunity Scheme (Amendment) Regulations 2023 (SI 2023/1182)
Created the action plan duties that Part 8 does not reach.
- legislation.gov.ukThe Energy Savings Opportunity Scheme (Amendment) Regulations 2026 (SI 2026/701), regulation 29
Reworded regulation 45(1) for the deemed compliance routes; added no new offence.
- Environment AgencyEnforcement and sanctions policy, Annex 2: climate change schemes — civil penalties
The four-step method, the size and culpability factors, the ESOS worked example and the new-entrant approach (§D2.3).
- Environment AgencyEnforcement and sanctions policy
The general publication rules.
- Environment AgencyHow to comply with ESOS phase 4, §§15.1–15.2
The three notice types, the regulators’ position on action plans, and appeal routes.
- GOV.UK (Environment Agency)Energy savings opportunity scheme (ESOS): find out if you qualify and how to comply
The regulators, and the summary of penalties imposed in England.
- First-tier Tribunal (General Regulatory Chamber)Decision UKFTT/GRC/2022/507 — an ESOS penalty appeal
Reproduces the Environment Agency’s Steps 1–4 workings and the substituted penalty.
- Environment Agency (data.gov.uk)Climate change civil penalties
The published record of penalties issued under climate change schemes, including ESOS.