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• CRC Energy Efficiency Scheme

The CRC Energy Efficiency Scheme is an energy saving and carbon emissions reduction scheme for the UK.

The chancellor announced the government’s intention to simplify the Carbon Reduction Commitment (CRC) and cut red tape in the recent budget.

Key proposals for the simplification package to create a new leaner CRC include:

• Provide greater business certainty by introducing two fixed priced sales of allowances a year (one forecast and one retrospective), rather than auctions of allowances in a capped system.
• Allow for greater flexibility for organisations to participate in 'natural business units'.
• Reduce the reporting burden by reducing the number of the fuels reported from 29 to 4.
• Reduce scheme complexity by removing the residual percentage rule (90% rule) and CCA exemption rules.
• Reduce overlap with other schemes so that organisations covered entirely by CCAs do not need to register; no longer requiring EU ETS installations to purchase allowances for electricity supplies.

This does not mean the CRC Energy Efficiency Scheme will go away. The legislation delivers a substantial sum to government coffers and in all probability will be simplified but not replaced. In any event any changes will not take effect until next year, meaning that businesses will still need to comply with the existing rules until then.

energyTEAM can assist organisations in the following areas.

Phase One

The CRC Energy Efficiency Scheme was introduced by government in 2008. Organisations that meet the qualification criteria, based on how much electricity they consumed in 2008, are obliged to participate in the CRC. As well as reducing carbon emissions, the scheme will help organisations save money by reducing their energy bills. The better an organisation performs in terms of lowering its emissions, the higher it will appear in the annual performance league table.

Phase Two (April 2012)

Have you taken steps to understand how it will affect you?

Organisations who had previously submitted an Information Disclosure under Phase One of the scheme may need to register as a full participant in Phase Two.

Phase Two of the CRC will begin in April 2012 and a reduction in the qualification level is expected. Because of this, it is our recommendation that any organisation currently using 3,000 MWh to 6,000 MWh should engage with the analysis process on their emissions and create a CRC strategy in order to reduce the financial and administrative burden going forward.

For further information please click here.

For further information please click here.