Carbon Reduction Commitment (CRC) here to stay or all change again!?

The Government has confirmed it is significantly changing around 46 aspects of the CRC Energy Efficiency Scheme. It has promised to thoroughly review the effectiveness of the CRC again in three years’ time.  Crucially, all existing and potential participants will need still to register from April 2013 for Phase 2.
The Environment Agency is continuing to conduct its compliance audits and non-compliance is being identified in between a third to half of cases!

The following will be implemented in time for this year’s submission:

  • CRC allowances will be £12 per tonne of carbon dioxide (tCO2) in 2013/2014 rising to £16/tCO2 the following year. After that prices will rise in line with the Retail Price Index
  • only two fuels will need to be reported – gas used for heating and electricity
  • 100% of fuel will now need to be reported but there will be a 2% threshold, so organisations using a small amount of gas for heating don’t need to report it
  • there are to be restrictions regarding when and how Electricity Generating Credits (EGCs) can be used
  • the deadline for surrender of allowances (not purchasing!) will be extended to the end of October to allow more time to complete the sale process
  • the performance league table is being abolished but emissions data will still be published
  • some domestic electricity and gas supplies are now excluded

From March 2014 all the remaining proposals will be implemented including these amendments:

  • responsibility for compliance with CRC will transfer from the landlord to the tenant if there is a 30 year lease or longer
  • state funded schools will be exempt
  • trusts will be treated differently
  • unmetered supplies will now be included

The Government estimates that changes to the CRC will save approximately £272 million for participants; but those who have already jumped through all the hoops are arguing they would rather stick with the devil they know!

Updated guidance on Phases 1 and 2 of CRC is expected end of February/early March 2013.

If you have views on the CRC changes, why not let us know?  We’ll report them back in our blog in the future.

PASCHALi has advised companies such as the Royal Mail and Regus offices on their CRC obligations.  We can help you with the latest round of changes and also advise on low cost ways to significantly reduce your energy spend and corresponding CRC charges.  If you want to know how an expert consultant can support your in-house resource, saving you time, cost and potential mistakes, read more here.

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