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SECR: The key facts

Streamlined energy & carbon reporting:

 The Government has recently published their response to a consultation on the introduction of a new reporting framework, due to come into effect from 1st April 2019 and which is called “Streamlined Energy & Carbon Reporting” (SECR).

This
 page provides essential information and aims to remove any confusion that is likely to exist in the early stages as the full details of this legislation are being finalised.

Key facts on SECR

Who needs to comply:

  • Organisations that need to participate are:
    1. UK Quoted Company (MGHG)

                     OR

    2. UK listed company with two of the below:

      • Number of employees > 250
      • Turnover > £36m
      • Balance sheet total > £18m

            OR
    3. Part of group meeting criteria above 

  • SECR affects most organisations currently covered by ESOS legislation. However, most ESOS participants do not currently participate in CRC and so SECR will impose annual energy and carbon reporting on a large number of businesses who until now have only been involved in the four-yearly cycle of ESOS.
  • UK Quoted companies will be required to report Global emissions and Global energy use, where practical.

What is SECR?

  • SECR is in effect, an extension of Mandatory Greenhouse Gas (MGHG) reporting. It is an annual reporting requirement for organisations to disclose their energy consumption and carbon emissions relating to their use of electricity, natural gas and transport.
  • The information above is subject to change since a final SECR Guidance document is expected to be published by the UK government in January 2019.

    Do you have any questions? Give us a call!

Key Dates

31st Mar 2019

CRC Scheme Ends

The existing CRC scheme ends on 31st March 2019

31st Mar 2019
1st Apr 2019

SECR Due to Commence

SECR is due to commence from 1st April 2019 and will apply to all Large Undertakings.

1st Apr 2019
31st Jul 2019

CRC Reporting Due

CRC reporting for the 2018/19 year due by 31st July 2019

31st Jul 2019
1st Apr 2020

First SECR Reporting Due*

Actual reporting will be required following your organisation's first full financial year commencing on or after 1 April 2019. This means your first SECR report will only be due on or after 1st April 2020.

 

*At the earliest depending on when your financial year runs.

1st Apr 2020

How will SECR be reported?

It is expected that organisations will need to include electricity, gas and transport energy and carbon emissions information in their annual company/directors reports. 

A narrative will be required within the annual report to provide an overview on energy efficiency measures that have been undertaken during the previous financial year.

An energy intensity metric will also need to be included. These reporting requirements make it essential for organisations to have accurate and timely energy/ emissions data.

No financial payment based on emissions is planned, unlike CRC.

Do you have any questions? Give us a call!

Frequently asked questions

How will Brexit impact SECR?
SECR will be a UK wide requirement and is not impacted by Brexit.
How many businesses will be impacted by SECR?
SECR is expected to apply to approximately 11,900 businesses.
Will SECR replace ESOS?

SECR does not replace ESOS; it complements it.

Are there any organisations exempt from SECR?

The latest response from BEIS to us includes the following changes to SECR policy:

  1. The introduction of a formal statutory de minimis threshold set at 40,000 kWh enabling companies using low levels of energy to be exempt from reporting; and
  2. The introduction of an exemption for unquoted companies when it would not be practical to obtain some or all of the SECR information
  3. The introduction of an exemption from disclosing information which the Directors think would be seriously prejudicial to the interests of the company.

 

My organisation is a subsidiary. Will I need to comply?
In short, yes. Companies that are not registered in the UK (non-UK incorporated) are not obliged to file annual reports at Companies House, and will, therefore, fall outside the scope of the mandatory SECR framework.  Howevver, where a parent company is not registered in the UK but has subsidiaries that are registered in the UK, these subsidiaries, if qualifying for SECR in their own right, would need to report.

Additional resources

Streamlined Energy & Carbon Reporting Factsheet
Download the factsheet
Government announces new rules on carbon and energy reporting
Read the article
What are the reporting requirements of SECR?
Read the blog post
What will the end of the CRC and the simultaneous increase of CCL costs mean for your business? Read
Read the blog post

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