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SECR Fines and How to Avoid Them

Posted in
Date
04/11/2021
secr fines and how to avoid them

Streamlined Energy and Carbon Reporting (SECR) is mandatory for almost 12,000 UK companies. But what happens if you don’t meet your requirements? That’s where SECR fines come into play.

In this post, we’ll take a closer look at SECR, the fines you could face, and most importantly how to avoid them!

What is SECR?

The SECR framework was launched in 2019. It requires eligible companies to assess and report their energy use and associated carbon emissions. The end goal being to make them more aware of their contribution, in turn encouraging them to reduce it.

Information should be submitted in your annual Directors’ Report at the end of each financial year, and must include the use of electricity, gas and transport fuel, as well as the greenhouse gas emissions which arise from them.

That needs to be accompanied by one or more intensity metrics, which defines energy use relative to the size of the company. Finally, companies need to explain how they’ve taken steps to improve energy efficiency each year.

Are there fines for SECR?

The SECR framework has been introduced with a view to cutting energy use and slashing emissions over time. But failure to do so doesn’t just impact your company’s green credentials. The Conduct Committee of the Financial Reporting Council, who are in charge of enforcing SECR, can also impose fines.

On top of that, Companies House can reject your annual accounts if inadequate information is provided. This could lead to SECR fines in the form of late deadline penalties when your accounts are resubmitted. Late filing penalties range from £150 up to £7,500 depending on the type of company and how late the accounts are submitted.

How to avoid SECR fines

Check if you’re eligible

SECR applies to all quoted companies whose shares are traded on the stock exchange, along with unquoted companies and LLPs that meet any two of the following criteria:

  • 250 or more employees
  • Annual turnover / gross income of £36+ million
  • Balance sheet assets of £18+ million

Meet the requirements

If you fall within the criteria above, you’ll need to make sure you submit your annual accounts on time each year with all of the required information. To avoid SECR fines, it’s best to seek expert assistance if you’re unsure or unclear about any of the requirements.

Compliance made easy

Volta Compliance helps businesses throughout Yorkshire with their SECR obligations – and we’re ready to help you too. After an initial consultation to guide you through the process, we’ll deploy a bespoke cloud-based solution to gather all your energy data for you.

Once that’s complete, you’ll get a full consumption report to submit with your annual accounts. We can also use your report to recommend changes that will reduce your energy consumption. As well as staying compliant and avoiding SECR fines, it could save you money on your energy bills going forward.

Contact us today on 0113 397 1361 or [email protected] to get the ball rolling.

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Richard Carr Volta Compliance
Richard Carr
Managing Director
Richard is the Director of Volta Compliance. He is a fully qualified approved electrician graded with the JIB. Richard has over 20 years electrical experience working on commercial and industrial installations.