SECR will impact all quoted companies as well as any unquoted companies, LLPs and groups that exceed at least two of the following three thresholds:
- £36m annual turnover
- £18m balance sheet total
- 250 employees
Where a large company has consumed less than 40MWh of energy in a reporting period, it qualifies as a low energy user and is exempt from reporting under the regulations.
Qualified unquoted companies and LLPs need to report their UK energy use and associated greenhouse gas emissions as a minimum relating to gas, electricity and transport fuel, as well as an intensity ratio and information relating to energy efficiency action, through annual reports. Quoted companies of all sizes continue to be required to report their global greenhouse gas (GHG) emissions and an intensity ratio through their annual reports.
Additionally, they are now required to report their total global energy use and information relating to energy efficiency action alongside the methodology used to calculate the new and existing disclosure requirements.
SECR will be enforced by The Conduct Committee of the Financial Reporting Council and financial penalties will be issued. Fines for the Energy Saving Opportunity Scheme (ESOS) were very high (fines of more than £40,000 have been issued) so ensure your compliance today.