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Regulation Summary

On 18 July 2018, the government announced its response to the outcome of the public consultation on SECR.  It is proposed that the new reporting framework will come in to effect from 01/04/2019.

It is important that businesses that fall within the scope of the new regulations are aware of their responsibilities.

It is proposed that companies that meet the following criteria fall within the scope of SECR:

·         At least 250 employees, or,

·         Annual turnover greater than £36m and annual balance sheet total greater than £18m. (Two or more of the criterial apply to a company within a financial year).

·         Organisations using low levels” of energy will not be required to disclose their SECR information if they can confirm they used 40,000 kWh, or less, in the 12-month period.

This applies to all quoted companies and apply to large UK incorporated unquoted companies.  This means that approx. 11,900 companies would be reporting.  It’s likely that most organisations who have had to submit a return for the Energy Saving Opportunities Scheme (ESOS) will be required to report to the new scheme. 

Companies that fall within the scope will need to disclose scope 1&2 greenhouse gas emissions and an intensity metric in their directors’ annual reports, and, where practical, report on global energy use.


In the Budget on 16 March 2016, the Chancellor of the Exchequer announced that the government has decided to close the CRC scheme following the 2018-19 compliance year. To account for the loss of tax revenue, they plan to absorb the price signal into the Climate Change Levy.

In 12 October 2017, alongside the Clean Growth Strategy, the Government launched a consultation on a proposed new reporting framework Streamlined Energy & Carbon Reporting (SECR). The Government’s goal is to enable businesses and industry to improve energy efficiency by at least 20 per cent by 2030. This will contribute to overall economic growth by reducing the amount of energy required per unit of output. The Final Impact Assessment states that the combined package results in a reduction of £1.3m in Estimated Annual Net Direct Costs to Business along with 4TWh of annual energy savings and associated annual carbon savings of 0.8MtCO2e, leading to a total Net Present Value benefit to society of £1,549 million

Who Qualifies?

All quoted companies

All large UK incorporated unquoted companies and LLPs, using the Companies Act 2006 definition of “large” (companies fulfilling at least 2 of the following conditions in the financial year: at least 250 employees, annual turnover greater than £36m, an annual balance sheet total greater than £18m).

To reduce the complexity and administrative burden, UK subsidiaries that qualify for SECR will not be required to report if they are covered by a parent’s group report.

Companies that are not registered in the UK are not obliged to file annual reports at Companies House and will not be in scope for SECR

Where a parent company is not registered in the UK but has subsidiaries that are, these subsidiaries will be in scope if they qualify for SECR in their own right

Organisations not registered as companies, for example public sector organisations, some charities and some private sector organisations, are not in scope of the SECR framework.

Companies using less than 40,000 kWh of energy in the reporting year will be exempt from SECR

How can EnergyFit Help?

As the final legislation has yet to pass through Parliament, we are unable to confirm if your company will be effected by the legislation.  However, if it is likely to apply to your business, we can help you prepare. If you would like to have a chat about what this might mean for your company and how you can comply in the future, please fill out the form below and we will be in-touch.

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