This new piece of government legislation is set to affect around 20,000 large and medium-sized UK organisations. While many perceive it as just another bureaucratic burden, there are actually opportunities to use it to your advantage and save money, stand out from your competitors and potentially be rewarded if you cut energy consumption.
At npower, we can help you to meet your Carbon Reduction Commitment (CRC Energy Efficiency Scheme) obligations, and also make the most of the potential benefits to your business. Call us now on 0800 0481 531 *.
The CRC creates a direct link between your carbon emissions and your bottom line. By failing to manage the CRC you could face financial penalties and damage your reputation. Watch our guide to the CRC to understand what the scheme means for you and how you can unlock the rewards it offers.
What is the CRC Energy Efficiency Scheme?
The CRC Energy Efficiency Scheme is a mandatory scheme introduced by the UK government to reduce the carbon emissions of UK businesses. Any business that fulfils the qualifying criteria but does not participate or comply fully will be fined.
Will it affect my business?
All businesses with settled half-hourly-metered energy consumption have to submit data. And the qualifying criteria for participation is that you singly, or collectively with other subsidiaries or a parent company, consumed more than 6000MWh of half-hourly-metered electricity (including through certain AMR and pseudo half hourly metering) during 2008.
What commitment do I need to make?
Either you, or a parent organisation on your behalf, has to:
- Calculate your half hourly electricity consumption for 2008.
- Register this data between April and September 2010.
- If you qualify for full participation, calculate and submit an accurate record of your organisation’s emissions for all relevant fuels for 2010/11 – and for every year thereafter.
- Buy carbon allowances to cover what your organisation emits.
When do carbon allowances go on sale?
The first allowances go on sale in April 2011 for the year 2011 - 2012. Allowances can also be bought through the safety valve or at any time on the secondary market but these are likely to be more expensive.
What is the CRC league table?
The CRC is designed to reward organisations that cut their carbon emissions and financially penalise those who do not. Each year, a league table will be published to show performance compared with an average of the previous years.
All the revenues received from carbon allowances will be returned, but the best-performing organisations will receive up to 10% extra on top of their proportionate return – and the worst-performing up to 10% less. Over time, this percentage bonus or penalty will increase to 50%.
Besides the financial implications, the league table will introduce transparency. For many firms, the public relations impact of a low league-table position will be as important as the financial penalty.
Start to understand your energy portfolio and what your energy consumption is
If you had one half hourly settled meter or more in 2008, look back to your 2008 records (or ask your supplier at the time to help) and calculate whether your consumption from all half-hourly meters, certain AMR and pseudo half-hourly meters was 6000MWh or over. If it was, you will need to register online with the Environment Agency and calculate your emissions from all relevant fuels in order to discover how many tonnes of CO2 you will need to purchase allowances for once trading begins. If you had half-hourly consumption but do not qualify you will have to submit an 'information disclosure'.
Also consider putting in place energy-saving measures such as installing automated meter reading (AMR) technology now – as these types of initiatives could earn you points that will improve your CRC league table position.
How can npower help me?
The CRC makes it increasingly important for your business to understand exactly how you use energy and to have a clear plan of action to reduce consumption, and therefore cut your carbon emissions.
npower’s m3 portfolio is designed to help you measure, monitor and minimise your business’s energy consumption. A comprehensive package of tools and services has been designed to support more effective and innovative energy management, wherever you are in the energy management journey.
For example, encompass professional is npower’s web-based energy management software that makes fulfilling your CRC Energy Efficiency Scheme obligations quicker and easier.
Where can I find out more?
• View our energy management products
• Visit the DECC Website
• Contact us on 0800 0481 531*, Monday to Thursday 9am to 5pm, and Friday 8am to 4.30pm
• Email us at: energymanagementservices@npower.com
