Is your business affected by the CRC Energy Efficiency Scheme?

In a recent study of 1000 industry accountants, it was concluded that 40% of companies were not aware of CRC and 60% had done nothing to prepare for the scheme which is set to commence in April 2010.

What is the CRC Energy Efficiency Scheme?

The CRC Energy Efficiency Scheme (formerly known as the Carbon Reduction Commitment) is a mandatory commitment for all UK businesses using more than 6,000 MWh through half-hourly meters annually (this equates to around £500,000 in yearly energy bills), starting in April 2010. It will affect around 5,000 businesses. It is estimated that CRC will cost businesses an average of £38,000 per year including the cost of staff and their appropriate training for the CRC reporting procedure.

How will the CRC Energy Efficiency Scheme operate?

The CRC Energy Efficiency Scheme will eventually operate over seven-year cycles, but the initial introductory cycle will run for three years from April 2010 and consists of four key phases:

• Qualification period (2008)
• Registration period (April-Sept 2010)
• Footprint year (April 2010-2011)
• Compliance years (April 2010-2013)

Q: Like many businesses my organisation has not yet taken steps to address the requirements of CRC. What should we do?

As has been stated above, many qualifying businesses have not yet commenced their preparation for the CRC Energy Efficiency Scheme. We are still in the Registration Period, therefore it is now time to act. Contact us for more information and assistance.

Q: My business fell just below the qualification for the CRC Energy Efficiency Scheme. Does that mean we can ignore it for the future?

If your business has a hour-hourly meter but consumes less than 6,000MWh per year, your business will not be compelled to be involved in the CRC Energy Efficiency Scheme but you will need to disclose some information to the CRC administrator.

It is clear, however, that the thresholds will be reduced in future. Acting now in terms of energy efficiency projects is in your interest. Contact us for more information and assistance.