Environmental Services

Carbon Reduction Commitment (CRC)

What is CRC?

The Carbon Reduction Commitment (CRC) is a mandatory scheme developed by the UK Government to encourage large, non-intensive energy users to reduce their carbon dioxide emissions. The aim is to cut carbon emissions by 1.2 million tonnes by 2020 to help the UK meet its Kyoto Protocol reduction targets.

The scheme was originally intended to provide financial incentives for organisations to cut energy usage & provide reputational benefits. However, now this has evolved into a “revenue generation” model - typically increasing overall energy costs by 10-12%.

Who is Targeted?

CRC applies to organisations with annual electricity consumption via half-hourly meters in excess of 6,000,000kwh. Those organisations with an annual electricity expenditure of £500,000 per more should therefore take particular care to determine their qualification status – the penalties for failing to register or report in appropriate detail are very punitive.

Organisations with emissions already subject to EU Emissions Trading Scheme (EU ETS) or Climate Change Agreements (CCL) may still be required to comply with CRC dependant on their degree of participation in these other schemes.

What is involved?

Each subsequent year ending 31st March will require the submission of an Annual Report – submitted electronically to the Environmental Agency (the UK department tasked with ensuring compliance).

Evidence Packs need to be maintained as a strict requirement of all CRC participants and ALL participants are expected to be audited within each discrete phase.

Phase 1 covered the reporting period up to 31st March 2014.

Phase 2, continues from 1st April 2014 to 31st March 2019. This required a re-registration by 31st January 2014 for Participants. Importantly, this provided an opportunity for organisations to exit this reporting regime if their circumstances have changed – an approach a number of Informed clients took advantage of through our careful guidance.

The “Information Category” ceased to exist for non-participants in Phase 2. However, those near the qualification thresh-hold would be well advised to keep suitable evidence in place should their qualification status ever be challenged in the future.

Our Services - How can we help?

Our services can encompass some or all of the following:-

  • Professional Updating – the CRC scheme has already undergone significant changes since its original formation. More changes seem inevitable. Informed’s retentions will help ensure you keep abreast of these changes, remain complaint and avoid any financial penalties or reputational damage caused through inadequate reporting.
  • Determining the Compliance Level – qualifying per customer the level of compliance they are required to undertake – from Registration through to full Participant Status.
  • Information Disclosure – this reporting category no longer exists as part of Phase 2. However, Informed would strongly recommend users maintain suitable records to prove none-qualification. Informed can provide compile these records and / or provide further client-by-client based guidance on this topic.
  • Registration – all Participant status are obliged to re-register their HH meters by 31st January 2014.
  • Participant - Evidence Packs – maintenance of supporting site data for all electricity & gas supplies.
  • Participant - Annual Reports - taking the lead role in submitting these reports. Please note – Footprint Reports are no longer required as part of Phase 2 reporting. That means the primary opportunity to exclude reporting obligation – e.g. if a separate CCA exists – will be the registration process.
  • Participant - Budgeting Support – clarifying the carbon cost values & payment timescales. Please be aware that carbon will be increasing from £12/tonne to £16/tonne from 1st April 2014.