Carbon Reduction Commitment (CRC)
What is CRC?
The mandatory CRC Energy Efficiency Scheme requires that all qualifying organisations purchase carbon allowances to cover their carbon emissions. Its aim is to reduce the amount of carbon dioxide (CO2) emitted in the UK. The scheme runs in five-year phases. It is currently in its second phase, which runs from April 2014 to March 2019. This will be the final phase of the CRC in its current format, as the Government has announced that the scheme will be merged with the Climate Change Levy after 2019.
The principal legislation relating to emissions reduction after 2019 is likely to be the Mandatory Greenhouse Gas Emissions Reporting Scheme (MGHGR), which was launched in 2013.
Who needs to comply?
Any business that has consumed more than 6,000MWh of electricity through at least one half-hourly meter in 2013 must comply with CRC in its current phase. Businesses that met the criteria in 2013 must comply for the entire five-year period, even if their consumption subsequently falls below the 6,000MWh threshold. Businesses that did not meet the qualification criteria in 2013 do not need to comply, even if their consumption rises above the 6,000MWh threshold before the end of the current phase.
How do you comply?
To comply with CRC you must report your electricity and gas consumption to the Environment Agency (EA) each year. The reporting year runs from April to March. The EA uses your consumption figures to calculate your CO2 emissions for the year, for which you must purchase carbon allowances.
You need to surrender a carbon allowance to the EA for each tonne of CO2 emitted as a result of your energy consumption. The price of these allowances changes each year in line with the Retail Price Index (RPI). Businesses can buy carbon allowances in advance at a five per cent discount. If you have any surplus allowances at the end of the year, you can sell them or carry them over to the following year as long as it is still in the same phase of the scheme. Participants must also maintain an evidence pack which supports their data submissions to the scheme.
How can ENGIE help?
We can support your compliance with CRC at every stage. From identifying your organisational structure to determine which sites are in and out of scope for CRC, through to collecting your consumption data and submitting your report to the Environment Agency. We can also conduct a gap analysis to see how CRC has been managed to date and identify any changes you need to make to comply fully.
Our specialists will assemble and maintain your evidence pack. We’ll order your carbon allowances for you and surrender them to the EA on time to ensure you meet your obligations in full. We have the resources and in-house expertise to manage your compliance smoothly, dealing directly with the EA on your behalf and saving you considerable time, effort and resources in meeting the requirements of this legislation.
We can help you to save money by purchasing your allowances in advance, based on your predicted consumption. What’s more, our Chartered Institution of Building Services Engineers (CIBSE) qualified auditors will carry out an internal audit each year, as recommended in the official CRC guidance notes, to identify energy-reduction and cost-saving opportunities and improvement measures.