More NewsEmission impossible for utility groups

Emission impossible for utility groups

Centrica and other utility groups are left to soldier on without trading scheme guidance

Utility companies participating in the EU emissions trading scheme (ETS) have
been left without any clear guidance on how to account for carbon emissions
since June this year.

FTSE100 group Centrica revealed last week, that because of a lack of
‘definitive guidance’, it had gone ahead and adopted its own treatment for the
emissions.

‘Given the fact that there is no guidance, we have returned to underlying
accounting principles and aimed to provide a clear and transparent picture of
our position,’ a Centrica spokesman said.

IFRIC, the IASB’s interpretive arm, produced a treatment for the ETS last
year, but the European Commission asked the board to remove it because it
created mismatches between assets and liabilities.

This has left companies to soldier on alone when deciding how to reflect
changes to accounts caused by emissions quotas, which have soared in value from
7 euros (£4.70) per allowance at the start of the year to more than 20 euros.

Richard Gledhill, head of climate change services at PricewaterhouseCoopers,
said the lack of guidance could complicate comparisons between utility
companies.

‘There are a range of options for accounting for emissions and the
consequences are that comparisons will be more difficult between companies using
different measures,’ said Gledhill.

Related Articles

Amazon UK halves its corporation tax bill despite increased turnover

More News Amazon UK halves its corporation tax bill despite increased turnover

4m Alia Shoaib, Reporter
Increase in UK business confidence despite Brexit, according to ICAEW

More News Increase in UK business confidence despite Brexit, according to ICAEW

7m Alia Shoaib, Reporter
Live blog: Spring Budget 2017

Corporate Tax Live blog: Spring Budget 2017

9m Accountancy Age editorial
The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

Insolvency The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

11m Accountancy Age editorial
Leonard Curtis called in as administrators for builders Boshers

Legal Leonard Curtis called in as administrators for builders Boshers

11m Stephanie Wix, Writer
New Year Honours of 2017

Accounting Standards New Year Honours of 2017

11m Stephanie Wix, Writer
"Not enough time" to implement MTD by 2018, says Tyrie

Corporate Tax "Not enough time" to implement MTD by 2018, says Tyrie

1y Stephanie Wix, Writer
Colin: A spoonful of investment...

Governance Colin: A spoonful of investment...

1y Stephanie Wix, Writer