23 November 2018 | Herpreet Kaur Grewal
The streamlined energy and carbon reporting regulations (SECR) tax comes into effect in April, but thousands of companies have not heard of it, the chief executive of the Energy Managers Association (EMA) told attendees of the Energy Management Exhibition (Emex) conference this week.
Lord Rupert Redesdale said: "What I find funny is that this is going to affect 10,000 companies starting in April and hardly anybody has heard of it."
He outlined the EMA's toolkit, which operates with a four-step approach including data collection, auditing, board sign-off and presentation in the annual report [of the company].
Redesdale added that having to include the information in annual reports would mean that energy efficiency would be more integrated into a company's operations and energy managers or facilities managers would not need to convince the board separately on these matters.
The SECR will replace the Carbon Reduction Commitment (CRC), a mandatory carbon emissions reporting and pricing scheme to cover large public and private sector organisations in the UK that use more than 6,000-megawatt hours a year of electricity.
However, the SECR will apply to all large companies, up to 11,000 in number and firms with more than 30 employees, which have an annual turnover of £36 million and a balance sheet greater than £18 million.
The only exclusions for organisations meeting these criteria are for those with very low energy consumption of fewer than 40,000-kilowatt hours a year. There are no exemptions or exclusions for companies holding Climate Change Agreements (CCA) or participating in EU ETS.
The original plans for SECR were published in July, with more detail added in the recent Budget. Further draft guidelines will be published this month, with a full set due early next year.