Government Seeks Views on Draft SECR Guidance

           Energy Efficiency

BEIS is inviting comments on the draft guidance that will accompany the new Streamlined Energy and Carbon Reporting (SECR) that comes into force on 1st April 2019. The government department is asking to receive views on the clarity and usefulness of the guidance by 14th January.

The final reporting year for the CRC Energy Efficiency Scheme is 2018/19, after which the SECR comes into effect. The new regulations apply to all companies quoted in the stock exchange and to large unquoted companies. A large company is defined as one that meets two or more of the following criteria:

  • 250 employees or more
  • Annual turnover of £36m or more
  • Annual balance sheet of £18m or more

Early identification of qualification will enable companies to make the necessary changes in time to meet their SECR obligations.

Large companies will be required to report UK energy use and associated scope 1 and scope 2 emissions. This means that electricity, gas, and transport will be included as a minimum. An intensity metric must also be included (as an example, this could be shown as tonnes CO2e per m2 floor area), together with a narrative to provide a high-level overview of energy efficiency measures.

The inclusion of transport data will inform and encourage management of what is now the largest emissions source in the UK.

Companies quoted on the stock exchange are already required to report annual emissions and an intensity ratio in their annual report. SECR will present these companies with the additional requirements of reporting their total global energy use and information relating to energy efficiency action, alongside the methodology used to calculate the required information.

The new approach effectively streamlines data collection requirements for companies that are required to comply with both ESOS and SECR. Both schemes cover electricity, gas, and transport as a minimum. Meanwhile, energy efficiency steps taken as the result of ESOS audits support the SECR narrative requirements.

It is predicted that SECR will cover approximately 11,300 companies compared to just 4,000 that currently have to comply with the CRC. A total of 1,200 companies listed on the stock exchange already comply with the existing Mandatory GHG Reporting.

Nikki Wilson

Nikki joined Alfa Energy in September 2015 as a Carbon Management Consultant where she advises clients on legislation, compliance, and the implementation of carbon management schemes. She is a Practitioner member of IEMA, has a postgraduate diploma in Environmental Decision Making, and has over 15 years’ experience in energy consultancy.