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Mandatory reporting and audit obligations

The range of obligations we can support include:

Streamlined Energy and Carbon Reporting (SECR)

Introduced in April 2019, SECR impacts many more businesses than previous schemes. You must comply if your business meets two out of three of the following criteria: 250+ employees and/or an annual turnover greater than £36 million and/or an annual balance sheet total greater than £18 million.

Energy Savings Opportunity Scheme (ESOS)

Organisations with 250+ employees, or with an annual turnover of €50+ million, are required to conduct and submit energy audits to identify energy and carbon-saving opportunities every four years.

Energy Performance Certificates (EPCs)

All landlords for both domestic and non-domestic buildings must have an EPC with an A-G rating, plus a report identifying energy efficiency recommendations.

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Display Energy Certificates (DECs)

All public buildings with a total ‘useful’ floor area of 250+ m² are obliged to have a DEC, reporting energy usage and an A-G rating, plus an advisory report.

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Air conditioning inspections (TM44s)

Building owners or managers are legally required to have regular inspections of air conditioning units with 12kW+ capacity. This needs to include a report, highlighting areas for operational improvements.

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Best practice accreditation

Securing an international standard in energy or environmental management can deliver commercial and reputational benefits for your business, including cost savings, and will demonstrate your commitment to continual improvement. It may even exempt you from certain mandatory obligations.

Our team can help your business qualify for the following best practice accreditations:

  • ISO 50001 is an internationally recognised standard that specifies how businesses should establish, implement, maintain and improve an energy management system. It is an ideal way to embed best practice into your business on an enduring basis. ISO 50001 will also provide exemption from ESOS compliance
  • ISO 14001 is another internationally recognised standard that supports effective environmental management by providing a specific framework. ISO 14001 helps businesses drive down costs through a broad focus on environmental factors such as supply chain design and resource efficiency

Energy tax exemptions

Non-commodity charges make up a sizable proportion of your overall invoiced energy costs. These include Government levies designed to encourage businesses to be more energy efficient and reduce carbon emissions, as well as those that support renewable generation.

Certain businesses are eligible to claim exemption or relief from some of these charges.

climate change

Climate Change Levy (CCL)

The CCL is added to business energy invoices and collected by your supplier on behalf of HMRC. But you do not have to pay CCL costs, or may be able to claim relief, if you:

  • Use self-generated low-carbon energy
  • Consume less than 33 kWh of electricity or 145 kWh of gas a day
  • Are a charity engaged in non-commercial activities
  • Are classified as a large Energy Intensive Industry(EII) and have a Climate Change Agreement with the Environment Agency

Energy intensive industry exemptions

Energy intensive industries are defined by industry sector and intensity of consumption. Your business may qualify for exemptions via Government schemes designed to keep UK businesses competitive with their EU counterparts, whose energy costs are often lower. The exemptions could provide a reduction of up to 85% of the costs of Contracts for Difference (CfD), Renewables Obligation (RO) and Feed-in Tariff (FIT) levies.

To qualify for exemption, you have to successfully apply for EII status. To do this, you must:

  1. Manufacture a product in the UK within an eligible sector
  2. Pass a 20% electricity intensity test

You will then be issued with a certificate to pass to your energy supplier, so that your exemptions can be applied to your invoices.

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