Business Compliance & Regulation

A regulatory initiative led by Ofgem, the TCR is designed to reform how electricity network costs are recovered by businesses. The goal is to increase transparency the way network charges are distributed. Previously, these charges were based on how much energy a business used, but under TCR, costs are more fixed and linked to factors like business size and grid usage. This could change the amount that business is charged.

Under SECR, large companies are required to report their energy consumption, greenhouse gas emissions, and energy efficiency actions in their annual financial reports. This includes electricity, gas, and transport energy usage. SECR is designed to encourage businesses to reduce energy consumption, enhance efficiency, and lower their carbon footprint, while promoting accountability and supporting the UK’s broader climate change goals.

ESOS is a mandatory energy assessment scheme for large businesses based in the UK. ESOS is designed to give organisations the opportunity to conduct an in-depth review of their energy use in order to identify ways to improve energy efficiency. ESOS requires organisations that meet the qualification criteria to audit and report on at least 90% of their energy usage to The Environment Agency every 4 years.

The EII scheme provides relief to businesses in sectors that consume large amounts of energy, such as manufacturing. The scheme reduces the costs of energy by offering discounts on electricity bills for companies that meet specific criteria. This helps energy-intensive industries remain competitive while balancing high operational costs.

These scheme mandates that all non-domestic electricity meters in Profile Classes 5-8 switch to half-hourly (HH) metering by October 2025. If your business has a higher energy usage, you will have your electricity consumption recorded every 30 minutes. Generating more accurate billing and better visibility of energy use, businesses should consider the impact of any existing inefficient energy practices.

For UK businesses operating in the EU, the EU's CSRD requires detailed sustainability reporting from large companies with EU operations or subsidiaries. The CSRD requires companies to disclose environmental, social, and governance (ESG) data, including their impact on sustainability and how they manage related risks. This directive expands reporting obligations and is intended to enhance corporate transparency, helping stakeholders assess sustainability performance.