Okay. Hi everyone. So it’s Energy Helpout and we are going to do define energy carbon reporting for you in five minutes. So Streamlined Energy and Carbon Reporting or SECR as it’s also known, is the new annual reporting requirement for quoted companies, large unquoted companies and large limited liability partnerships. (It) came live in April, 2019. So covers the, just the financial year just gone as well as every other financial year going forward from here on. And it replaces what you might remember, if you were involved in it, it was the CRC energy efficiency scheme that existed before and all their elements and the reporting elements of that scheme have been transferred into the new SECR scheme. Amaad, do you want to tell us a bit about the scope of it?
Yes. So in order to meet the requirements for SECR in terms of the companies that needs to comply, you need to hit two of the following; so you have to have more than 250 employees, a turnover of £36 million pounds and a balance sheet total £ 18 million pounds. So if you hit two of those, then you have to comply with SECR and you comply by submitting an energy and carbon report within your annual director’s report to Companies House. So I think Damian will talk about what’s required in that energy & carbon report in a bit more detail.
Yep. So if you meet one or two or more of those requirements that Amaad just set out, you’re obliged now going forward, every year to report your UK only energy use and associated greenhouse gas emissions. As a minimum, related to the natural gas, electricity and transport fuels. You also need to report an intensity ratio. So that might be the amount of electricity consumed per widget produced. And there’s also some further information you have to provide a little narrative around the energy efficiency action that you’re taking within your business. So those are the requirements for it. Amaad, it doesn’t come without its penalties, does it?
No. Just to add one more point to what you were saying there Damian, the energy and carbon report needs to be done, ideally to an international methodology such as the Greenhouse Gas Protocol or an ISO standard.
So yeah, in terms of penalties, if you file an incorrect or late filings to Companies House, i.e. you don’t produce the correct energy and carbon reports, you are liable to civil penalties under the Companies House Act of 2006, I believe. In addition to that, direct action can be taken against directors of organisations who are directly liable for ensuring a correct energy and carbon report is produced. And so that sort of wraps up, in a nutshell, what’s required and what the SECR is. I believe were under the five minute mark, so we’ve been successful in that and not …
Just a quick word on deadlines Amaad . If your usual financial year is the 1st of April to the 31st of March. The first period that you need to report is 1st April, 2019 through the 31st of March, 2020. So the financial year just gone. You’ll need to cast back and look at the energy data and greenhouse gas data for that period. And then another your financial year is the 1st of January to 31st of December. Comply with requirements will be the 1st of January, 2020 this year, the 31st of December this year. So yeah. Now is the time to be looking at those metrics and understanding what it is you’re going to report and how’s it going to report it, and who you are going to report to.
Perfect. I think that that wraps it up then for this episode of Energy Helpout on SECR compliance. Join on the next one, hopefully. Take care.