Following the Spending Review, the Government has announced major changes for Participants of the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme.
Changes:
The changes mean that the scheme will act more similarly to a tax. Participants will have to purchase allowances for every tonne of carbon emitted, the revenue from which will be kept by the government to support public finances.
Prior to the changes the scheme could potentially cost Participants a maximum of 10% of their allowance payout in the first year; however the scheme will now cost participants 100% of their allowance payout.
Considerable uncertainty exists surrounding the exact details of the legislation following the Government announcement on 20 October 2010. Further information is expected from the Department of Energy and Climate Change over the next month.
The mandatory requirements and complexities associated with reporting emissions remain. Professional Energy Services offers compliance guidance and risk assessment services in relation to the developing CRC scheme.
Organisations and Companies with a total half hourly metered supply in excess of 6,000mWh in 2008 which is equivalent to approximately £400k will automatically qualify for inclusion into the CRC scheme.
From April 2010 all companies with a half hourly registered meter will have to register on to the CRC Registry Website and register their supplies.
Participants within the scheme are required to purchase carbon allowances each year to cover the emissions for the forthcoming year. Therefore accurate assessment of an organisations energy usage is essential to avoid purchasing unwanted carbon credits.
Phase 2 includes:
A National league table for all participants will be used to show the best performing organisations within the scheme.
It should be noted that the purchase of carbon allowances for the first 3 years of the scheme are expected to be around 8-10% of a company’s annual energy expenditure.
Integral to our service offering is the monitoring, targeting and management of our client’s energy usage. We are therefore ideally situated to aid our clients through every stage of the CRC process, thus ensuring that they take advantage of the available financial gains.
Participants can improve their standing within the league tables by taking advantage of schemes such as the ‘Early Action Metric’ or by acquiring a ‘Carbon Trust Standard’ or equivalent.
As an integral part of your energy contract, we offer a complete CRC solution. This encompasses every stage of the process, from an initial energy survey to assess energy efficiency at your site, through to project management and implementation of our recommendations. We are committed to preparing our clients for CRC and we can improve the environmental performance for your organisation. This will help you avoid extra costs, letting you take full advantage of the financial gains that will be available.
