The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) is one of the tools implemented by the Government that will help the UK minimise carbon emissions, whilst ensuring that we have access to clean and affordable energy for years to come. CRC will address these issues in two main ways:

• Charging organisations on the carbon emissions that result from their energy use
   
• Putting the environmental performance of organisations in the public eye, by publishing the performance of all those covered by the scheme in a league table
   

How does it work?

• The CRC affects most organisations with a half hourly electricity consumption of over 6,000 MWh per annum (circa £400k)
   
• At the start of each compliance year, organisations affected are required to purchase allowances of carbon that they expect to emit over the following year.
   
• At the end of each compliance year, organisations covered will be placed in the CRC league table.
   
• Carbon allowances will then be refunded based on your organisations ranking within the league table. Organisations with poor environmental performance will be penalised, whilst those with good performance will be rewarded.

How can Inenco help?

The cost of carbon allowances for the period 2010 – 2013 will make up approximately 8% - 10% of the annual energy bill.

Therefore, by implementing energy efficiency measures and minimising carbon emissions, organisations can take advantage of significant financial benefits.

Inenco can offer a complete solution, our services range from compliance only to a fully outsourced CRC solution. This solution includes management of data, legal compliance, maintaining your evidence pack and any CRC reporting obligations for the full duration of the introductory phase.

Additional services may include energy surveys and project implementation to reduce your consumption.

We are committed to preparing our clients for the CRC and we can improve environmental performance at your organisation, avoiding the extra costs and instead taking advantage of the financial gains that will be available.

IMPORTANT CRC UPDATE - 7TH JULY 2010

Even if you are entering the CCA scheme in April 2011, you will still have the following CRC obligations:

1. Registration fee.
2. Registration as a full participant - which will then have to be followed by proof of exemption once you are registered for a CCL discount through a trade federation.
3. Supporting evidence for registration.
4. Carbon footprint report.

If you are in this situation and would like to seek Inenco's assistance to comply with the scheme, make an enquiry.

IMPORTANT CRC UPDATE - 12TH MARCH 2010

BSI have developed a new Kitemark scheme designed to verify and certify Energy Reduction and Management in UK organisations. Built on the BS EN 16001 Energy Management system standard, the Kitemark is expected to be adopted as an Early Action Metric under the CRC Energy Efficiency Scheme, as an alternative to the already established Carbon Trust Standard.

Organisations with a BS EN 16001 Energy Management System in place will be able to qualify for the Kitemark by demonstrating an annual Enegy Reduction of at least 2.5% per annum, based on 3 years of consumption data (the current compliance year, plus the 2 previous years). This data will be independently assessed and verified by BSI before the Kitemark is awarded.

Once an organisation has achieved the Kitemark, it will be valid for 2 years following the compliance year. If you would like to seek Inenco's assistance in achieving the Kitemark, make an enquiry.

IMPORTANT CRC UPDATE - 9TH NOVEMBER 2009

The Environment Agency are now the administrator for the CRC Energy Efficiency Scheme. Registration guidance is now available on their website: www.environment-agency.gov.uk/crc

For further information on the resources available, you can download the letter recently sent out by the Environment Agency: download pdf

IMPORTANT CRC DISCLOSURE UPDATE - 6TH NOVEMBER 2009

Businesses are now being asked to complete their information disclosure on-line on the CRC on-line registry.

To clarify companies will no longer receive disclosure packs through the post. 

IMPORTANT CRC UPDATE - 7TH OCTOBER 2009

The Carbon Reduction Commitment will now be known as the CRC Energy Efficiency Scheme (CRC). The new words have been added to better reflect the primary objective of the scheme which is the achievement of carbon emission reductions through increased energy efficiency.
The most important changes to the CRC policy as a result of the consultation include:

Cash flow
The first sale of allowances in April 2011 will now only require participants to purchase allowances for the year ahead and no longer for the previous year as well. This comes after stakeholder concern regarding the impact of a double sale on their cash flow. As a result, the first year of the Introductory Phase will therefore become a monitoring period.

Principal Subsidiaries
Large subsidiaries that would qualify in their own right can now choose whether to disaggregate themselves from their organisational group and participate independently. To reflect these changes, Principal Subsidiaries are now referred to as Significant Group Undertakings.

Early Action Metric
Organisations which have demonstrated commitment to reducing their emissions either by achieving the Carbon Trust Standard, or accreditation from an equivalent scheme can use this to be counted towards the Early Action metric. The relative weighting of this metric in the overall performance score, compared to the Absolute reduction and Growth metrics, will be reduced more gradually to better recognise early action taken, from 100% in the first year, 40% in the second year and 20% in the third year.

Treatment of renewables
The CRC will treat electricity which receives a Feed In Tariff in the same way as electricity which is issued a Renewable Obligation Certificate, and has simplified the approach to reporting and accounting for renewably generated electricity. As an energy efficiency mechanism, CRC will not provide additional incentives for renewable generation. We will, however, publish alongside the performance league table, the organisations increase in onsite renewable generation together with energy efficiency savings. This will allow organisations to gain reputational credit for their investment in onsite renewables.

Public Sector Organisations
The definition of a public sector organisation has been simplified to create better clarity for participants in the CRC. Organisations designated as a „public authority‟ in the Freedom of Information Act 2000 and the Freedom of Information Act (Scotland) 2002 will participate in CRC on the basis of their individual FOI/FOI (S) listing, unless they are legally part of another body, in which case they would participate as part of that parent body.

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