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What Are the Criteria for SECR?

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what are the criteria for secr?

Streamlined Energy and Carbon Reporting (SECR) eligibility is a hot topic for businesses across the UK. Not least because you could face a fine of up to £40,000 for non-compliance.

In this post, we’ll take a closer look at the SECR criteria and your responsibility as a business owner or site manager for an eligible company.

A brief introduction to SECR

SECR was launched in 2019 to replace the Carbon Reduction Commitment. It requires eligible businesses to include energy and carbon information within their annual directors’ or trustees’ report.

While the direct aim is simply to get businesses reporting their energy use and carbon emissions, it’s hoped the scheme will eventually lead to reductions in both. Of course, reducing energy isn’t just beneficial to the environment. It means lower running costs for your business or your site. It also provides greater transparency for stakeholders.

SECR eligibility

Similar to the Energy Saving Opportunities Scheme (ESOS), SECR is mandatory to organisations that are defined as ‘large companies’ according to the 2006 Companies Act. That means they meet two or more of the following criteria:

  • £36 million or more in turnover or gross income
  • £18 million or more in balance sheet assets
  • 250 or more employees

However, unlike ESOS, it’s also compulsory for all unquoted companies – those whose shares are available on the stock exchange.

Energy use criteria

The final consideration for SECR eligibility is the amount of energy used by your company. Unquoted companies who use less than 40,000 kWh over the course of the reporting period are classed as low energy users. That means they don’t need to report their energy use and carbon emissions.

It’s worth noting that the 40,000 kWh threshold is not particularly high. Given that the average house uses around 15,000 kWh in gas and electricity combined, it’s pretty likely that a large company with 250+ employees will reach 40,000 kWh.

That’s especially true when you factor in fuel use by company cars alongside gas and electricity use on premises. Any transport where the company is responsible for purchasing the fuel must be included in the calculations and the subsequent report if you meet the criteria. However, it doesn’t include transportation services that employees use, such as trains, planes or taxis.

SECR compliance made easy

If you want to be sure about SECR eligibility for your Leeds business, the team at Volta Compliance can help. In an initial consultation, we’ll discuss the SECR criteria and clarify your legal obligations. If you choose to proceed, we’ll deploy a bespoke cloud-based solution which gathers your energy data for you.

A detailed consumption report is generated for verification by a third party, which then allows our team to recommend areas for improvement to reduce energy use, minimise your carbon footprint and save your company money.

Sound good? Give our team a call on 0113 397 1361 or email [email protected].

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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.