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Streamlined Energy and Carbon Reporting (SECR)

What is SECR?

Streamlined Energy and Carbon Reporting (SECR) is a new set of regulations that come into force in April 2019.

Under SECR, large businesses across the UK will be required to publicly report energy use, carbon emissions and energy efficiency actions. It replaces the unpopular and overly complex CRC Energy Efficiency scheme, which will be scrapped at the same time that SECR is introduced.

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Is your organisation affected by SECR? 

SECR will apply to:

  • All UK quoted companies (whose shares are listed on the Stock Exchange).
  • Large UK incorporated unquoted companies and limited liability partnerships (with more than 250 employees or an annual turnover in excess of £36m and an annual balance sheet in excess of £18m)

However, you will be exempt if:

  • It is impractical for companies to obtain and publish the required information, or where doing so is considered 'seriously prejudicial' to the interests of the company.
  • The company's energy consumption is lower than 40,000 kWh during the reporting year
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How to comply with SECR

Companies falling within the scope of SECR will be required to:

  • Calculate and report UK energy usage, including electricity, gas and transport
  • Report Scope 1 and 2 Greenhouse Gas emissions, including an intensity metric. Scope 3 reporting will be voluntary.
  • Where practical, quoted companies are additionally required to report on global energy usage and greenhouse gas emissions.

How much is this going to cost?

Unlike the CRC, there is no revenue generating aspect to SECR. The tax element of CRC is being carried through to the Climate Change Levy (CCL) to ensure that the abolition of CRC is fiscally neutral. As such, from April 2019, CCL rates will increase sharply. 

What is the business impact?

SECR is expected to apply to nearly 12,000 companies, which is about the same number already in scope of the Energy Savings Opportunity Scheme (ESOS).

The government's impact assessment states that its simplification package could save businesses £20m per year in administration costs, but increase capital costs through encouraging wider implementation of energy efficiency measures.  It is hoped that SECR will help meet the government target of improving business energy efficiency by 20% by 2030.

Why is this happening? 

SECR is part of the government's commitment to introducing 'simpler, better energy and carbon reporting' and is intended to reduce the administrative burden, while driving energy efficiency improvements and awareness.  

As part of its streamlining process, SECR aligns with existing reporting requirements for greenhouse gas emissions and the Climate Change Levy (CCL).

Frequently asked questions

What is the timeframe associated with this legislation?
The draft legislation (http://www.legislation.gov.uk/ukdsi/2018/9780111171356/contents) was laid on 18 July and will be subject to debate, still to be scheduled
When is formal guidance due to be released?
Formal guidance from Department for Business, Energy & Industrial Strategy (BEIS) is anticipated in January 2019, subject to Parliamentary approval.
Where do companies need to publish SECR data?
Companies are expected to publish the SECR data within their existing Annual Reports, which will simplify the process and help raise the profile of energy efficiency in the board room. There is currently no mandatory requirement for electronic reporting.


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