Carbon Reduction Commitment (CRC)
Carbon Reduction Commitment (CRC) is designed to help the UK meet the stringent targets set by the Climate Change Act 2008. The first mandatory scheme captures those who used 6,000MWh of electricity in 2008 and have at least one Half Hourly Meter. Essentially, business will buy in advance a credit in April every year for their expected CO2 emissions over the next 12 months. Currently it is expected each tonne of CO2 will cost each business £12. The Government are allowing business to trade within the year their allowance should they pollute more or pollute less. For most business involved it is a massive on-cost at the start of each year. There are ways to reduce the amount payable, if you are already involved with Climate Change Agreements (CCAs) or EU Emissions Trading Schemes.
It is anticipated that over 20,000 businesses will need to subscribe to the CRC.
What are the important features of CRC?
· Qualification is based on a company or group of companies having at least one Half Hourly Metered site and consumption of 6,000MWh of electricity in 2008.
· All energy usage of a subsidiary company is to be included as a group. You cannot escape by having satellite companies on the periphery.
· Registration is expected. A pack will be delivered to all sites with a Half Hourly Meter.
· A footprint is required April 2010 to March 2011.
· The first compliance year is April 2010 to March 2011. You are expected to buy credits for the CO2 you intend to create over the forthcoming year.
· At the end of each year, you will be expected to report if you have done better or worse than expected. Any additional CO2 emissions will need to be paid for. However, if you have saved lots of CO2 you can sell back the credits.
· Failure to register is an automatic £5,000, rising £500 a day for everyday you are not registered.
· Once you are in the CRC programme, you pay for every tonne of CO2, not just for the electricity amount, which is only your qualification.
· You will also be entered into a league table with all other companies, there maybe additional fines for those businesses that still do not reduce their energy year on year.
The CRC is a mandatory scheme and it is thought one day will incorporate much smaller users just as soon as the larger users of energy are captured.
Please take a look at the pdf which shows a realistic example of the costs of the scheme.
Carbon Consultancy Company can help you, by the following measures:
1) Administering all your energy bills, to ensure your energy is procured efficiently, negotiate and contract any un-contracted energy. We will also highlight if you fall into the CRC scheme.
2) Complete your registration to CRC.
3) Provide a carbon footprint now so that you can start to budget for CRC.
4) Provide a carbon footprint every year and trade any CO2 emissions that are not used.
5) Through the use of our energy surveys, highlight where savings can be made at any of your sites.
6) Help you to reduce energy consumption and reduce the CRC burden.
Carbon Consultancy Company want you to act now. We want you to be aware of the costs and to do everything economically possible to reduce emissions and the CRC burden. We do not want you to be fined and therefore starting early in collating energy consumption across a group of companies might take some time to do. Typically, savings of upto 30% can be achieved at each site with current technologies, this has scope to increase yet further.
Contact us now to discuss Carbon Reduction Commitment (CRC)
To see our example of the typical costs of CRC please download our pdf.
Carbon Consultancy Company – here to help you reduce carbon, save money and prosper!