ESOS and SECR | Low Energy Consultancy

Overview of ESOS and SECR

ESOS

ESOS (Energy Savings Opportunity Scheme) presents a new and significant opportunity for large UK businesses.

What is ESOS?

EU legislation, requiring member states to introduce a mandatory programme of energy audits for ‘large enterprises’. This will operate over a 4 yearly compliance phase as detailed below:

                      Qualification Date       4 Yearly Compliance Phase       Compliance Date

Phase 2        31 Dec 2018                    6 Dec 2015 - 5 Dec 2019               5 Dec 2019

Phase 3        31 Dec 2022                    6 Dec 2019 - 5 Dec 2023               5 Dec 2023      

Who or what are large enterprises?

Large organisations with more than 250 employees or a turnover in excess of €50m.

What’s involved?

To be ESOS compliant, these large organisations will be required to review the total energy use from their business operations, including building energy use, transport energy use and industrial processes.

This is then translated down to an amount of energy used per employee and to identify potential measures that could save energy. 

Another eco-stick and small carrot?

ESOS may be viewed as another costly enviro-compliance on top of SECR (Streamlined Energy and Carbon Reporting) (replacing CRC). However, LEC have a broad team of specialist energy consultants that believe if you act now your business will be able to maximise paybacks and the merits of this mandatory scheme.

SECR

SECR (Streamlined Energy and Carbon Reporting) replaced the previous CRC (Carbon Reduction Commitment) in April 2019.

What is SECR?

Mandatory reporting compliance for qualifying companies:

1. Quoted companies as defined in section 385 of the Companies Act 2006

2. UK registered, unquoted large companies as defined in the Companies At 2006 (not the same as ESOS).  Referring to companies that meet TWO of the following conditions in the financial year they are reporting

* At least 250 employees

* An annual turnover greater than £36M and/or

* An annual balance sheet total greater than £18M

3. Large Limited Liability Partnerships (LLPs) already obligated to carry out energy audits under the requirements of ESOS Regs 2013 and were also likely to have been required to report under CRC.

4. Large unregistered companies that operate for gain and currently have to produce director's reports under the Unregistered Companies Regulations 2009 with those reports needing to comply with the Large and Medium-sized Companies and Groups Regulations 2008.

When is reporting required?

Standard Reporting Year April to 31st March - 1st reporting deadline - 1 April 2020 (for the period between 1st April 2019 and 31st March 2020)

Standard Reporting Year 1st January - 31st December - 1st reporting deadline - 1st January 2021 (for the period between 1st January 2020 to 31st December 2021)   

What’s involved?

SECR is a board level issue that involves input from other areas of the business such as facility managers, operations, energy management and external stakeholders. 

All UK registered, quoted companies:

  • Report on the annual quantity of Greenhouse gas (GHG) emissions and energy consumed from utilities (electricity, gas etc) for their own use
  • Previous year’s figures
  • What proportion of their energy consumption and emissions related to the UK
  • A narrative commentary on any energy efficiency action taken in the last year

UK registered, unquoted large companies/Large LLP’s/Large unregistered companies:

  • Report on the annual quantity of Greenhouse gas (GHG) emissions and energy consumed in the UK from their activities relating to combustion of fuel for transport or the combustion of gas.
  • Report on the purchase of electricity for their own use
  • A narrative commentary on any energy efficiency action taken in the last year

How can LEC help you with ESOS and SECR?

LEC have in house Lead ESOS assessors whom are fully qualified to survey, report and submit the business ESOS submissions.  The submissions must be submitted by a person with this qualification.

Our in house assessors are fuly up to speed with the reporting requirements of SECR and can support and assist with the data format and content of the annual SECR report.  Contact us for more details

Crockett & Jones, Northampton
Crockett & Jones, Northampton

Featured Case Study

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