On 1 April 2019 a major shake-up in energy and carbon reporting will take place. From this date Streamlined Energy and Carbon Reporting (SECR) will replace the CRC Energy Efficiency Scheme. The new SECR framework will also replace and extend Mandatory Greenhouse Gas Emissions reporting (MGHG) for quoted companies.
In making these changes, the UK government aims to simplify carbon reporting requirements, while ensuring that businesses have the right information to reduce their emissions and energy costs.
What is SECR?
SECR applies to quoted companies, large unquoted companies and large limited liability partnerships (LLPs). Eligible companies are required to disclose their annual greenhouse gas emissions and energy consumption.. They must also report on energy efficiency actions completed during each compliance year. Businesses must publish this information as part of their annual financial filing obligations.
SECR will not replace existing Energy Saving Opportunities Scheme (ESOS) reporting, which remains unchanged.
What are the key changes?
What are the reporting requirements?
Who is Exempt from SECR?
Where should companies report?
When do relevant businesses need to report by?
The earliest SECR reporting date will be 1 April 2020, but this is dependent on how a company's financial year runs, e.g:
Is there a cost implication to SECR?
In contrast to the CRC scheme, there is no taxation impact on businesses. However, this 'lost' tax revenue from the abolition of CRC will be offset by increased Climate Change Levy (CCL) rates, which will increase substantially from 1 April 2019.
How Centrica Business Solutions can help
It is essential that businesses monitor and analyse their energy consumption and emissions performance using advanced energy insight strategies and technologies. In this way they can simplify data capture and reporting processes.
We can help businesses with both ESOS and SECR reporting – supporting the entire compliance process and exploiting opportunities to reduce energy costs and improve energy sustainability.
Jack Presley Abbott
Jack is a Senior Regulatory Manager for Centrica, drawing upon experience in a number of commercial and policy roles.
Jack is an expert on regulatory areas that are of interest to Centrica Business Solutions. Jack has expertise and experience across a range of topics which includes the capacity market, balancing services and carbon pricing, and regularly engages with external stakeholders on these subjects.
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