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Energy and carbon: Will your business be required to report after April 2019?

Liz Minshall
Sep 11, 2018

Last year the Government announced that the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) Scheme was to be abolished and since then I’ve been waiting for the announcement of a replacement energy reporting regime.

New energy reporting scheme

Now that the CRC is set to go many businesses will be breathing a big sigh of relief, as with it goes a huge financial burden.

That said, the announcement of the new Energy and Carbon Reporting Regulations has provoked mixed reactions as it will introduce mandatory reporting for many more businesses that are currently required to report annually. Added to that, the Government also previously announced an increase in the Climate Change Levy (on electricity) from the 1 April 2019 to ensure that the change is financially neutral. This means that, although companies that did have to report and pay under CRC are still likely to be better off, those that didn’t have to pay under CRC won’t get that benefit and will only see an increase in their energy bills.

Scheme requirements

The new scheme will require large companies to report energy usage. So, what is the definition of a large company I hear you ask.

According to the Companies Act 2006 a large company is any company that meets two out of the following three sets of criteria:

      Has more than 250 employees
      Has a turnover of more than £36 million
      Has a balance sheet over £18 million

In addition, there will be different reporting requirements dependant on company size. However the requirements cover reporting on scope 1 (direct) and scope 2 (indirect) emissions and an intensity metric.

I understand that there are currently no plans to introduce a central reporting mechanism, and reports will be required to be integrated into annual Directors’ reports – with the aim of increasing visibility and engagement of energy management at senior level.

Will the new scheme replace other reporting mechanisms?

Unfortunately, the new scheme will not replace any other reporting mechanisms, which means that affected businesses will still need to report separately for Climate Change Agreements (CCAs) and Energy Saving Opportunities Scheme (ESOS). Although those already reporting under mandatory carbon reporting will see little change and will only be required to include further details on energy efficiency measures.

Don’t forget ESOS

In the meantime, the qualification deadline for ESOS is looming and the Environment Agency recently circulated an update to try and encourage affected businesses to act now to ensure early compliance.

Valpak can help

The Policy Team have put together a summary of the new energy and carbon reporting requirements which can be accessed here.

I have also produced an e-guide which contains information and advice about how to make sure your organisation complies with ESOS obligations. You can request a copy here.

In addition, I hosted a “Preparing for ESOS” webinar last month so please contact me if you wish to be sent a recording. There are also still places available on our free support sessions where you can get one to one advice on your compliance with ESOS.

If you would like to find out more about how Valpak can help you to comply with the new reporting requirements or ESOS please contact us today to discuss your requirements on 03450 682 572, email 


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Disclaimer: The opinions expressed in this weblog represent those of the individual authors and not those of Valpak Limited or any other organisation.