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On 10 December 2012 the Government published how it intends to simplify the CRC Energy Efficiency Scheme (CRC).

Background

CRC is a UK-wide emissions trading scheme designed to incentivise the take up of cost effective energy efficiency opportunities. Organisations that meet the qualification criteria are required to take part. Participants are typically large public and private sector organisations.

Government Departments must participate regardless of whether they meet the qualification criteria or not.

The CRC scheme is split into phases:

  •  Phase 1 started on 1 April 2010 and runs until 31 March 2014.
  •  Phase 2 is from 1 April 2014 to 31 March 2019.

 Thereafter there will be four further phases, each of five years, and a final phase of four years commencing in April 2039.

Main changes and timetable for their introduction

The main changes introduced by CRC simplification are:

  • The reduction in reportable energy supplies from 29 to two – gas (used for heating purposes only) and electricity.
  • Introduction of an organisation-wide 2% de minimis threshold for gas. If the gas you use for heating is less than 2% of your overall electricity consumption (as compared in kilowatt-hours) in the first annual reporting year of a phase then you don’t need to include it at all.
  • Restriction of the circumstances in which Electricity Generating Credits can be claimed.
  • The deadline for the surrender of allowances each year has been changed from the last working day in July to the last working day in October.
  • Performance League Tables will be abolished. Instead, the Environment Agency, in its role as scheme administrator, will publish data on participants’ energy use and emissions, in line with a framework.

 

Read more about our CRC offering here 

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