Carbon Reduction Commitment

CRC Energy Efficiency Scheme

On 1st April 2010, the Government’s CRC (Carbon Reduction Commitment) Energy Efficiency Scheme came into effect

The CRC Energy Efficiency Scheme applies to all companies with at least one electricity meter settled on the half-hourly market. Organisations who consumed more than 6,000 megawatt-hours of half hourly metered electricity in 2008 may be required to participate fully in the scheme.

Organisations who used less than 6,000 megawatt-hours of half hourly metered electricity in 2008 are excluded from full participation of the CRC Energy Efficiency scheme. However, If you have a half hour electricity meter on your premises (and if you spend more than £100k on your energy) then you will be included in this legislation to some degree.

The three levels of compliance and reporting are as follows:

1. If during the 2008 calendar year you consumed more than 6,000 MWh of half-hourly metered electricity (which generally equates to approximately £500,000), then you will qualify as a full participant in the CRC Energy Efficiency Scheme’s cap and trade scheme and will be required to make a full disclosure.

2. If you used between 3,000-6,000 MWh of energy then you have certain disclosure and reporting obligations.

3. Used under 3,000 MWh? Then you have a reduced set of reporting obligations.

All UK companies are liable, regardless of where their headquarters are, and both public and private sector companies are included. It is essential that all of the group’s undertakings are accounted for and as such it is the parent company who will be directly liable for the submission unless the relevant organisation is of sufficient size to have several Significant Group Undertakings (SGU’s) in which case a number of submissions may be made for each SGU.

GENEX are professional independent energy, environmental and water management consultants who have a wealth of experience in working with businesses and public bodies across the UK in supplying a wide range of energy efficiency products and specialist energy services. We already have a number of clients who we are currently assisting with the CRC registration and management and are fully aware of the complex requirements, implications and benefits of such a scheme. We can therefore provide industry leading advice bespoke to each client by:

•           Assess your UK structure and find out if you qualify for CRC

•           Ensure all your emissions are captured for your footprint and annual report

•           Monitor your carbon emissions throughout the year

•           Collect and record all your emissions data in an evidence pack

•           Forecast annual carbon emissions (electricity, gas and fuels used on your sites)

•           Plan your carbon emission reduction programme

•           Provide support to help you achieve early action metrics through AMR and energy standards

•           Help you avoid unnecessary penalties (such as those that would apply if you fail to register or keep accurate data)

•           Compile and maintain evidence data packs

•           Prepare, compile and submit annual returns

•           Organise, report and procure carbon credits

If you have already identified what needs to be registered before September 2010 (or indeed have already registered with the Environment Agency) then the next priority is to look at Early Action Metrics. To ensure you will achieve as high a league table position as possible to both minimise the future carbon costs and to maximise the potential financial benefits of the scheme.

Failure to act in line with the Environment Agency time line may result in significant penalties to clients as well as incurring reputational risks for the organisation in question.

For further advice and assistance in Energy, Environmental and Water Management call GENEX on 01423 816220 or email us on enquiries@genex.eu.com