CRC becomes SECR – Streamlined energy and carbon reporting 2019
The department for business, energy, and industrial strategy (BEIS) have recently confirmed the new mandatory energy and carbon reporting for many UK organisations. With the closure of the CRC energy efficiency scheme, the new SECR will see large UK companies publicly report on their energy use, carbon emissions and energy efficiency actions. The SECR will replace the current CRC framework from April 2019.
Companies with more than 250 employees, or an annual turnover greater than £36m and an annual balance sheet greater than £18m, will be required to take part in the new streamlined scheme. Along with GHG emissions, these companies will be required to report their total global energy use including gas, electricity, and transport. The new scheme will mean companies reporting energy usage in the UK will increase from 1,200 to 11,900 – the total number of companies included in reporting on ESOS.
Customers using 40,000kWh or less per annum are exempt from the SECR, providing they can give proof. The total package of the new SECR leads to an average annual energy saving of 4 TWh, roughly the equivalent of shutting down an entire nuclear power plant. Along with the new SECR, BEIS have reported that the current business energy efficiency market is worth approximately £350m, but could grow to £5bn by 2032.
A key driver of whether or not companies engage with energy saving measures is purely down to their level of awareness for the majority of stakeholders. Many small to medium companies are still unaware of the myriad ways to optimise energy usage. Granted, there are still many different ways to report on energy consumption, the SECR does not do a great deal to simplify that for businesses, having to report on: GHG emissions, energy usage in MWh, energy intensity, CO2e, the list goes on.
The future looks bright for energy efficiency in the UK, but it will not be without its challenges. The electrification of transport and heat, demand side response, and smarter grids will means the landscape of energy production and usage will chain dramatically; reporting will become even more important.
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