The CRC Energy Efficiency Scheme (CRC) is a mandatory government scheme aimed at incentivising energy efficiency in large public and private sector organisations by levying a fee on CO2 emissions. This scheme was designed to help the government achieve its target of reducing greenhouse gas emissions by 80% in 2050. In 2016, Chancellor George Osborne announced the CRC will eventually be abolished and replaced with higher Climate Change Levy (CCL) charges on your energy bill. Click here for an explanation of CCL and other charges seen on your energy bill. Organisations required to participate in CRC will have to continue to meet their obligations until the end of the 2018/19 compliance year.
What are the CRC qualification criteria?
- Phase 1: participation is compulsory for all organisations with a Half-Hourly metered site who used over 6000 megawatt-hours (MWh) in the 2008 calendar year
- Phase 2: participation is compulsory for all organisations with a Half-Hourly metered site who used over 6000 megawatt-hours (MWh) in the year 2012/2013
Requirements of the Scheme
The scheme is split into phases:
- Phase 1: From 1st April 2010 to 31st March 2014
- Phase 2: From 1st April 2014 to 31st March 2019
A qualifying organisation must register as a participant with the CRC registry on the Environment Agency website. Upon registration, a participant must monitor and annually report their business energy consumption within a defined scope – typically gas and electricity. The CRC registry then uses this information to calculate a participant’s carbon dioxide (CO2) emissions and the number of allowances that must be purchased. In its current phase, organisations simply purchase the number of allowances to cover their CO2 emissions and then surrender these to the government later in the year.
Finally, participants must maintain an evidence pack of documents related to their compliance, and conduct an annual internal audit of these documents.
Failure to meet the obligations under the scheme could result in prosecutions or fines.
It important to know that being on a Green Energy Tariff does not exempt you from participating in the CRC scheme, as CRC is an energy efficiency scheme, their concern is how much energy you use rather than where it comes from.
CRC and other Regulatory Scheme and Tariffs
Your organisation may be on a non-conventional energy tariff, or may simultaneously be involved in several government regulatory schemes that could impact one another. Pulse can advise on the overlap of these. For example:
- CRC and ESOS: If you met the qualification criteria for both these schemes, you will need to participate in both, though you may use your CRC data to aid your ESOS assessment.
- CRC and CCA: Participating in a CCA will exempt the portion of your organisation covered by the CCA from CRC obligations.
- Green energy tariffs: Being on a Green Energy Tariff does not exempt you from CRC obligations, as CRC is an energy efficiency scheme, their concern is how much energy you use rather than where it comes from.
CRC Support Service
CRC obligations can be time consuming and confusing. Our CRC Support Service will take the difficulty out of compliance, and can be tailored to meet your needs. We offer the following CRC services:
|Qualification Assessment||If you are unsure of whether or not you have to take part in the scheme, we can assess your companies eligibility and advise of the first steps.|
|In-House CRC Workshop||Pulse can provide a briefing for your management team to ensure that your organisation has a full understanding of the scheme and its impact on your business. In this briefing we will provide a full overview of the process from start to finish, and how you can make the most of your participation.|
|CRC Registration||Though the registration for this phase ended on 31 January 2014, you will likely be notified by the government if have not yet registered. Pulse can assist you with late registration and negotiating any associated fines.|
|Data Collection and Reporting||We can provide an ongoing co-ordination service, collecting your energy usage data and collating your reporting evidence for each year that you are eligible for the scheme. This includes updates on CRC news and changes to the scheme as well as maintaining an evidence pack for your organisation.|
|Energy Initiatives||To help you reduce your energy consumption and therefore your overall CRC liability, we can provide access to a range of energy saving advice specific to your industry.|
Get in touch
To find out how we can help you manage your CRC responsibilities please call Ben Dhesi, Managing Director on 0333 7000 250.