CRC Energy Efficiency

The Carbon Reduction Commitment (CRC) energy efficiency scheme is an initiative of the government of the United Kingdom geared towards improving the energy efficiency. This is mainly through the reduction of the Carbon Dioxide in organisations especially those that are energy intensive. The scheme does not cover any agreements on climate change or those of the EU Emissions Trading System.

Read more about energy efficiency scheme

Who should enrol for this scheme?

The scheme is compulsory for all departments of the United Kingdom Government including any organisation to whom administration has been devolved by the government. In addition to this, organisations whose electricity or energy consumption usually measure half- hourly is above 6,000 MWh per year but whose consumption falls below the required threshold for the EU Emissions Trading System. These organisations usually include large supermarket chains, hotels and restaurants, banks and other large companies.

Charges and Fees

There are registration fees and annual subscription fees to be paid by the organisations that are registered with the scheme. During registration, organisation are expected to pay £950. This amount goes into accounting opening fees and the administration costs that are spent as the organisational checks are being carried out. The organisation is then expected to pay annual charges amounting to £1290.

Penalties for late registration

If your organisation ought to register with CRC but has not done so within the stipulated period, then a fine will apply. The initial fine is £5000. In addition to this, a daily rate of £500 for every working day, with an upper limit of 80 working days, will apply until your organisation completes the registration. To avoid these penalties, it is good to keep up to date with the deadline provided by CRC and comply to them.

Expectations of all registered organisations

All organisations that are registered with CRC are expected to gather information with respect to energy supplies and submit a report on this to CRC. They are also expected to purchase and submit allowances which are equal to their CO2 emissions. Any changes in the structure or nature of the organisation that would have an effect on their registration will CRC must be made known to the scheme. Adequate records with respect to the organisation and all its energy supplies are required by CRC.

Do you qualify?

How do you determine whether you qualify for registration? Organisations register as groups and not as individual branches or sections. Therefore, you are required to identify all departments, branches, departments and affiliates of your organisation that operate within the United Kingdom. Then, you should identify the half hourly electricity meter usually known as sHHMs that are within this organisation and find the total electricity consumption in these sHHMs in the year in question. From the total electricity consumption, deduct any electricity supplies that should be excluded. The figure you get is the qualifying amount of electricity used in your organisation that particular year.

Currently, phase two of the scheme is under execution and ends in March 2019 after which phase three is meant to commence. If you are not registered under phase two and have met the qualifications above, you should prepare for registration under phase three.