The Carbon Reduction Commitment (CRC) is a new mandatory and legally binding scheme from the Department of Energy and Climate Change. The CRC is a mandatory scheme that has been created to promote energy efficient practices and reduce carbon emissions. The CRC scheme officially commences April 2010, however for the organisations impacted there is a significant amount of work required prior to this date.

Are you included?

If your organisation has a site with half hourly metered electricity you will be required to register for the scheme. Qualification for the scheme is based on the amount of electricity that the organisation or site utilised during 2008-09. If the organisation or site’s electricity usage was greater than 6,000MWh and you are financially responsible for the electricity bill, you will qualify for the full scheme Qualification will require you to monitor, produce reports and ultimately purchase CO₂ allowances for all fuels used. Even if the organisation does not qualify, but has half hourly metering, you will be required to register and demonstrate why you don’t qualify for the full scheme. Failure to register for this scheme before the end of the registration period will make the organisation subject to a fine of £5,000 plus an additional £500 per day.

What’s required?

• Production of accurate emission records
• Calculation of the organisation’s total footprint emissions
• Creation of an annual footprint report (£5,000 fine for late or incorrect submission)
• Compiling of the required evidence pack
• Procurement of the necessary CO₂ allowances to avoid using the secondary market for
  allowances.

Timeframe for implementation

The first two years of the CRC scheme will be different from the subsequent years. In 2011 the organisation will need to purchase its CO₂ allocation for both 2010 & 2011. In addition to this in year one, the organisation’s position within performance tables will be based solely on the early action measures that have been taken, making early action and planning imperative if an organisation wishes to perform well and potentially receive a positive rebate against the CRC scheme CO₂ allowances bought. In years two and three, credits for early action will still count, but will be outweighed by credits for energy & emissions reduction measures taken.

What do I need to do?

Get prepared for these changes and plan ahead by compiling data on electricity usage for all half-hourly meters for 2008 for CRC qualification. CRC organisations should also begin considering a strategy in order to optimise their league table position. If you need any further advice or assistance in the preparation, implementation and management of the scheme please contact Carl Cressey (Tel: 0870 2458115) who will be able to provide you with the most up to date information and advise as to how GENEX can assist in the effective delivery of this service.