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- What is the CRC Energy Efficiency Scheme (CRC)?
- Scope
- Criteria
- Changes since the Comprehensive Spending Review
- League tables
What is the CRC Energy Efficiency Scheme (CRC)?
The CRC Energy Efficiency Scheme (formerly known as the Carbon Reduction
Commitment) is the UK's mandatory climate change and energy saving scheme.*
The CRC Energy Efficiency Scheme is a legally binding scheme that is aiming
to reduce electricity consumption and carbon emissions from large businesses and
public sector organisations.
Scope
According to the Department of Energy and Climate Change (DECC) the CRC
Energy Efficiency Scheme will engage around 5,000 organisations. It is designed
to tackle CO2 emissions not already covered by Climate Change Agreements and the
EU Emissions Trading Scheme. The scheme will cover large public and private
sector organisations that are responsible for around 10% of the UK’s emissions.
Criteria
The criteria for obligation are:
- If an organisation (and their subsidiaries) has at least one half-hourly
electricity meter (HHM) settled on the half-hourly market
- To have a cumulative corporate consumption in excess of 6,000 MWh of
electricity per annum (base year 2008) once electricity used for transport
and domestic accommodation has been excluded
Organisations that do not meet the 6000MWh threshold will have to make an
information disclosure of their half hourly electricity consumption during 2008.
Qualifying organisations will have to comply legally with the scheme or face
financial and other penalties.
Changes since the Comprehensive Spending Review
In October 2010 Comprehensive Spending Review the UK Government announced
that the CRC will be amended, with the first allowance sales for 2011/12
emissions now taking place in 2012 rather than 2011. Revenue from the sale of
CRC allowances, totalling £1 billion a year by 2014/15, will be used to support
the public finances, including spending on the environment, rather than recycled
to participants.
The implications of this announcement for CRC are:
- In order to clarify the price signal to participants and to support the
public finances, revenue from allowance sales will not be recycled back to
participants by the UK Government.
- The first sale of allowances will take place in 2012 instead of 2011,
postponing the financial requirements of the scheme for participants.
Participants will therefore be able to purchase allowances to cover their
2011/12 emissions at the end of the 2011/12 compliance year.
- The Performance League Table will be retained as the main reputational
driver within the scheme, with the metric weightings and publication dates
as envisaged in the current legislation (including the October 2011 table).
League tables
At the end of each compliance year, the CRC administrator gathers information
from the reports of all participants. This information will then be used to
compare performance in terms of how well organisations have reduced their
emissions. The comparative performance is then published as a league table.
*The CRC Energy Efficiency Scheme information on our
website is based on our best understanding of the announced policy decisions and
draft legislation.
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