CRC Energy Efficiency Scheme (Carbon Reduction Commitment)
The CRC Energy Efficiency Scheme is a UK government scheme designed to improve energy efficiency and cut carbon dioxide (CO2) emissions in private and public sector organisations that are high energy users. For the purposes of the CRC this means all companies that were consuming in excess of 6,000 kWh of energy annually and had at least one settled half hourly electricity meter (sHHM) during the qualification period for the relevant implementation phase. We are currently in phase 2, which runs from 1 April 2014 to 31 March 2019 and the qualification period ran between 1 April 2012 and 31 March 2013. Qualification for CRC is assessed at group level, not at individual company or organisation level, so you need to consider your entire UK organisational structure, and whether you are part of a group of companies, to work out if you are in scope.
Organisations affected by CRC have to register with the Environment Agency at the start of a phase, for the whole phase. The registration deadline for the current phase was 31 January 2014.
In each compliance year, an organisation that has registered for CRC needs to do the following:
- collate information about its energy supplies
- submit a report about its energy supplies
- buy and surrender allowances equal to the CO2 emissions it generated
- tell the Environment Agency about changes to its organisation that could affect its registration
- keep records about its energy supplies and organisation in an evidence pack.
All participants have to pay a registration fee of £950 and an annual subsistence fee of £1,290; both a zero rated for VAT. Financial penalties apply for non-compliance.
CRC policy is currently under government review. Full details of the CRC can be found here.