SECR stands for Streamlined Energy and Carbon Reporting. It is a policy that some large businesses must comply with, for financial years starting on or after 1 April 2019 and it coincides with the end of the Carbon Reduction Commitment (CRC) Scheme.
SECR doesn’t replace any existing requirements that companies may need to fulfil, for example the Energy Saving Opportunity Scheme (ESOS). Business will still need to comply with those requirements.
The aim of the policy is to bring carbon and energy reporting to more businesses and to encourage energy efficiency within businesses, bringing environmental benefits and cutting costs.
Who does it apply to?
Unless exempt, companies that fall within the below categories must comply with the policy.
All UK incorporated quoted companies
Large unquoted companies
Large Limited Liability Partnerships
Your company will be classed as “large” if it falls under two or more of the below criteria.
Over 250 employees
a turnover £36 million or over
an annual balance sheet of £18 million or over
The government encourages all companies to produce similar reporting, although this is completely voluntary.
How and when will I have to report?
All companies that qualify will need to include the reporting information in their Director’s report, with LLPs having to produce an equivalent Energy and Carbon report.
Reporting will need to be submitted for all financial years starting on or after 1 April 2019.
Climate Change Levy (CCL) is an environmental government tax charged on energy used by non-domestic consumers. It is designed to encourage businesses to be more energy efficient and reduce their greenhouse gas emissions. Some businesses are exempt from paying this tax.
Why has it increased?
CCL has increased steadily year on year, however with the Carbon Reduction Commitment (CRC) scrapped at the end of the 2018/19 compliance year, the CCL becomes the only carbon tax on energy bills and the government needs to recover the lost revenue elsewhere. We have seen considerable increases this April and are expecting even higher increases to be announced for April 2020.
Rates from 1 April 2016
Rates from 1 April 2017
Rates from 1 April 2018
Rates from 1 April 2019
Natural Gas (£/kWh)
Other taxable Commodities (£/kg)
Do I have to pay it?
CCL applies to all businesses, except for charities with non-commercial activities and some businesses with residential use (for example care homes). Businesses with monthly deminimis usage of 1000 kWh (electricity) and/or 4397 kWh (gas) are also exempt.
Some industries are eligible to pay discounted rates, if they sign up into a Climate Change Agreement (CCA) through their trade body/association. More information about CCAs can be found here.
Can I do anything to reduce my cost?
CCL rates are billed against your consumption and therefore the only way to reduce your cost would be to reduce your consumption. This could be achieved through behavioural changes (for example not leaving unnecessary equipment running over night) or energy saving initiatives, for example installing LED lighting or more efficient appliances/equipment.
The water market was de-regulated on 1st April. This means businesses no longer have to stick with their regional supplier.
The aim is to improve customer service and create saving opportunities for businesses. By introducing competition, customers are now able to choose a provider best suited for their needs and customer service expectations.
All water providers will need to have a water supply and sewerage licence and Ofwat will continue to regulate the industry.