Carbon Credentials, Carbon Reduction Commitment (CRC)

For UK organisations the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) is the one to be aware of. If you have a half hour electricity meter on your premises (and if you spend more than £100k on your energy you probably do) then you will be included in this legislation.

So what does the CRC mean for you?

There are three levels of compliance and reporting as follows:

If in 2008 you spent £500,000 or more on your annual electricity bill, then full disclosure and participation applies to you. In technical terms, this translates to using more than 6,000 MWh (megawatt-hours) per year, of half-hourly metered electricity. As a result, you will need to give full disclosure and will be a participant in the CRC Energy Efficiency Scheme's cap and trade scheme.

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

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.

Still unsure of your obligations? Then click HERE to find out more about our CRC Discovery service (CRCD), where we can help you identify which category your organisation fits into within the CRC, and therefore what obligations you have under the scheme.

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, click HERE for more details.

Still not convinced you need to act now? Let’s examine the 3 key impacts of the new CRC Legislation on your business:

1. Financial
   • Cash outlay: each year from April 2011, you’ll pay approx 10% of your annual energy spend to buy allowances
   • Up to 30% energy savings by guaranteed initiatives
   • 2-10% of your energy spend annually – dependent on league table position
   • Costs for single registration versus splitting into Significant Group Undertakings (SGUs)
2. Legal
   • Fines: eg. up to £45,000 by January 2011 for non-registration and £40/tonne of carbon for incorrect disclosure
   • Criminal Liability for fraudulent disclosure
3. Brand Reputation
   • Competitive advantage through published league tables
   • Staff, shareholders and other stakeholders
   • Improved Corporate and Social Responsibility

For help on reducing the risk of the above, call us now on 0845 543 9003.