What is the CRC Energy Efficiency Scheme (CRC)?
The CRC Energy Efficiency Scheme (formerly known as the Carbon
Reduction Commitment) is the UK's mandatory climate change and
energy saving scheme, which started in April 2010. It is central to
the UK’s strategy for improving energy efficiency and reducing
carbon dioxide (CO2) emissions, as set out in the Climate Change
Act 2008.
CRC is designed to improve energy efficiency in large
organisations. It will operate as a 'cap and trade' mechanism,
providing a financial incentive to reduce energy use by putting a
price on carbon emissions from energy use. In CRC, fully
participating organisations have to buy allowances equal to their
annual emissions.
The scheme is designed to tackle CO2 emissions not already
covered
by Climate Change Agreements (new window) and
the
EU Emissions Trading Scheme (new
window).
Who will be required to take part?
All organisations that had at least one half hourly electricity
meter settled on the half hourly market between January
and December 2008 are required to do something under the
CRC. Government estimates indicate that around 20,000 public and
private sector organisations are required to participate in some
way. The majority of these will simply be required to make an
information disclosure that tells the scheme administrator about
their electricity usage.
Organisations that used over 6,000 MWh of
electricity between January and December 2008 settled on the
half hourly market are involved in trading. This means they
must not only record and monitor their CO2 emissions, but also
purchase allowances equivalent to their emissions each year. It is
estimated that around 5,000 organisations will be required to do
this.
Those that used under 6,000 MWh will have to complete an
annual information disclosure providing the scheme administrator
with a list of all half hourly meters settled on the half hourly
market and calculate how much electricity was consumed.
How will CRC affect Suffolk Coastal District Council?
Suffolk Coastal only pays the electricity bill for one property
which is on a half hourly meter and this is the Council's Melton
Hill offices. Meter readings show that this site consumed 503,100
kWh between January and December 2008.
As our Melton Hill offices consumed significantly less than
the CRC threshold of 6,000 MWh (equivalent to 6,000,000 kWh) half
hourly metered electricity we will not be involved in trading. We
will be submitting our energy consumption data during the CRC
registration period and continue to monitor energy use and collect
records for the evidence pack.
Suffolk Coastal owns three other properties with half hourly
meters:
- Spa Pavilion, Felixstowe - paid by Openwide
Coastal Ltd.
- Felixstowe Leisure Centre - paid by DC Leisure
Ltd.
- Leiston Leisure Centre - paid by DC Leisure
Ltd.
In these cases the energy supply is responsibility of the
company who has the contract with the energy supplier.
Further information about CRC
More information about the CRC Energy Efficiency Scheme is
available on the Department of Energy and Climate Change (DECC)
website: