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What you need to know about SECR

04 November, 2019

With the first deadline approaching for SECR (Streamlined Energy and Carbon Reporting), ABB’s Stuart Melling takes a look at what companies need to do to prepare for the new regulations.

There’s a new energy reporting scheme in town. Called Streamlined Energy and Carbon Reporting (SECR), it is an attempt by the Government to replace the Carbon Reduction Commitment (CRC), and to simplify the various schemes and initiatives currently in place. It is also hoped that the scheme will steer companies towards improving their energy efficiency which, in turn, will help the UK to meet its wider energy targets.

Under the scheme, large energy users will have to report their energy usage, with suitable metrics, and make this information public every year as part of their annual report. The first compliance period began on 1 April, 2019, and the first reporting date is 1 April, 2020, so now is the time to get moving if you haven’t already.

Companies no longer have to pay allowances as they did under the CRC, but the resultant tax shortfall will be covered by increases to the Climate Change Levy (CCL). So companies will still have to pay for their energy usage, one way or another.

SECR shares a lot of similarities with Esos. Like Esos, it applies to large undertakings, specifically companies that meet at least two of the following criteria:

• they employ at least 250 people;

• they have an annual turnover of £36m or more; or

• they have a balance sheet of £18m or more

While these criteria are slightly different to those for Esos, as a rule of thumb, if you qualify for Esos it is likely that you will also qualify for SECR. The key difference between the two is that while Esos runs over four-year cycles, with the next compliance date on 5 December, 2019, SECR must be carried out annually.

The SECR report must disclose a qualifying company’s annual greenhouse gas emissions and energy consumption deriving from all of the electricity and gas they use, as well as transport fuels. In addition, the company must also report on energy efficiency actions carried out during the course of the compliance period. The scheme is administrated by the Financial Reporting Council, which has the power to issue fines for late compliance and/or non-compliance.

If your company qualifies for SECR, and you have not already started collating the relevant information to complete your report, then this needs to be rectified soon because the April deadline is approaching fast. However, you can also use this to your advantage. Since the Esos and SECR deadlines are only a few months apart on this occasion, data gathered for one scheme can be re-used for the other.

•  One way of getting a headstart on both Esos and SECR is by booking a free ABB Energy Snapshot. An ABB engineer will visit a facility for half a day and analyse a selection of motor-driven processes for their energy-saving potential. They will then produce a report, which can be used as part of both Esos and SECR processes. For more information, visit

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