Change of status (two-year rule)

Large UK Undertakings are required to comply with ESOS. However, a company may be classed as a Large Undertaking one year, but not the following year, which years data do you base your calculations on? (click here, to determine if your organisation falls within the scope of ESOS – opens a new window)

The Government’s guidance states that if you fall within the classification of a Large Undertaking for two consecutive accounting periods in the phase that is being reviewed, then you are classed as a Large Undertaking. Below is a diagram taken from the Government’s ESOS guidance.