The CRC energy efficiency scheme affects up to 25,000 organisations. Are you one of them?

A recent report from the Environment Agency indicates the scheme has the potential to reduce CO2 emissions up to 11.6 million tonnes per year by 2020 - the equivalent of taking 4 million cars off the road.

Insulating buildings to a high standard, fitting low energy lighting, controlling building temperature to an agreed standard and fitting voltage optimisation technology are easy measures organisations can take to cut carbon emissions.

The Carbon Trust calculates that organisations could shave 15 percent off their energy bills by simply turning lights off in areas not being used. 

Do you qualify for CRC?

Whether an organisation has to participate or make an information disclosure is determined by the following criteria:

• It must have at least one “settled half-hourly electricity meter”; and
• If its total supplies of qualifying electricity in 2008 are at least 6,000MWh it must participate. 
• For organisations falling below the threshold, they must make an information disclosure.

All organisations falling within the scope of CRC will have to provide data to the scheme administrators:  

• For those that used at least 6000MWh during 2008 (roughly equating to an annual electricity bill of £500,000 per year), start monitoring and recording emissions from energy use from April 2010.  These organisations need to register for CRC as a participant.
• If the amount was less than 6,000MWh in 2008, we must be told, but no further action is required. These organisations will need to make an information disclosure during the CRC registration period. 

Organisations need to register as a participant or make an information disclosure via the Environment Agency website during the CRC registration window, 1 April to 30 September 2010. 

Sole traders/individuals (“small emitters”) are excluded from any obligations under the CRC.

CRC guidance

We’ve already begun contacted all organisations we believe must comply with CRC and have published CRC registration guidance on our website.    

This guidance helps organisations:

• Understand what the CRC is;
• Understand how CRC applies to different organisations;
• Assess their organisation’s structure;
• Determine if they qualify for CRC;
• Decide if they are required to register as a CRC participant or make an information disclosure, with details on how to do so.

Top five tips to prepare for CRC

1. Read the CRC guidance available from the Environment Agency’s website
2. Understand your organisation’s structure.  Are you a franchisee/franchiser?  Group or part of a group (subsidiary)?  School?  University?  Part of, or an agency of, a central government department?  Joint venture or private finance initiative (PFI)?  There are specific CRC rules for these types of organisations. 
3. Determine if your organisation meets CRC qualification criteria.  Are you a participant or do you need to make an information disclosure?
4. Gather information and data.  Account for all of your half hourly meters and their total electricity consumption for calendar year 2008.   
5. Understand your financial commitment.  CRC participants will need to purchase allowances to emit CO2 emissions.  One allowance equals one tonne (t) of CO2.  During the CRC’s introductory phase, the price of an allowance will be £12/tCO2.