CRC Energy Efficiency Scheme
What is CRC Energy Efficiency Scheme?
CRC Energy Efficiency Scheme is a mandatory scheme to help Government reach their 2050 target of reducing UK emissions by 80% compared to the 1990 baseline.
Who will be affected by this scheme?
The scheme is aimed at large organisations that are not covered by the European Union Emissions Trading Scheme. (EU ETS) Any organisation that has at least one Half Hour Metered (HHM) site may have to participate in some form or another.
What size of customer will participate as a full member of CRC?
Organisations that consumed more than 6GWhs (6,000,000 kWhs) across all of their Half Hour metered (HHMs) sites during the Qualification Period, 2008 calendar year, will be a full participating member of CRC. However, organisations that did not consume 6GWh across all HHMs during 2008 will need to register as a non-participating member of CRC and must make an information disclosure. Organisations consuming more than 3GWhs through their HHMs must make a CRC emissions statement, but will not participate fully.
How will the scheme work?
Participating members must buy sufficient allowances to cover their emissions. 1 allowance for every tonne of CO2 (tCO2) they emit. The price for allowances of £12/tCO2 has been published by Department of Energy & Climate Change (DECC). The money raised by the purchasing of allowances was to be returned to the customer by way of a Recycle Payment. The level of the recycle payment would have been dependant upon the organisations position in the League Table. The league table ranks organisations against three energy saving criteria, called Metrics. Good performance, i.e. energy reduction, is rewarded by a higher position in the table, poor performance by a lower position.
Following the Government Spending Review, it is proposed that the money raised by the purchase of allowances will no longer be recycled to participants.
What are the three metrics?
Absolute metric is the reduction in emissions based upon a five year rolling average.
Early Action metric is used to determine the level of energy saving initiatives an organisation has implemented up to April 2011. These are: installation of AMR meters and gaining The Carbon Trust Standard.
Growth metric provides a method of awarding percentage change in emissions per unit turnover. It compares current per unit level of emissions relative to average emissions over the preceding five years.
When does CRC start?
The introductory phase began 1 April 2010 and would have lasted for three years had the Government not postponed subsequent phases as part of the spending review and consultation looking at the simplification of the CRC EES. All phases have a qualification period, a registration period, a footprint year and compliance years.
Will you qualify?
Answer a couple of questions below to see if you will qualify for the CRC Energy Efficiency Scheme...