CRC scheme background

CRC Energy Efficiency Scheme

The CRC Energy Efficiency Scheme (previously known as the Carbon Reduction Commitment) is a new mandatory emissions trading scheme effective from 1 April 2010. It targets large public and private sector organisations and is intended to have a significant impact on reducing UK carbon dioxide emissions.

Anyone participating in this scheme must monitor energy use and report on their equivalent carbon dioxide (CO₂) emissions and then purchase allowances, sold by Government, to cover these emissions each year. If you do not meet your legal obligations under CRC you may be fined.

Who will it affect?

If your organisation meets the qualification criteria you will be obliged to register and participate in CRC. Where an organisation is part of a wider corporate structure, the highest parent organisation or an alternative nominated primary member must act as the participant on behalf of everyone in that group.

Your organisation must register under CRC if, during the 2008 calendar year, it:

had at least one half-hourly electricity meter (HHM) settled on the half-hourly market;
consumed at least 6,000 MWh of electricity on all HHMs.

In early November 2009 we sent out qualification packs providing details of the registration process and of all electricity consumed through each settled half-hourly meter (HHM) during 2008. However, organisations will also need to consider consumption through all other HHMs – those not settled on the half-hourly market – in deciding whether they meet the threshold of 6,000 MWh.

If your organisation meets the criteria you must register as a participant.

When and how will I be required to disclose this information?

If your organisation had at least one HHM settled on the half-hourly market but used less than 6,000 MWh you will not have to take part, but you will be obliged to disclose the following information for 2008 to the administrator:

A list of all your HHMs settled on the half-hourly market.
If using at least 3,000 MWh you must, when required to do so, provide details of the total annual consumption of half-hourly electricity. If using less than 3,000 MWh you must also indicate this, using an online form, which will be available through these pages.

The qualification packs sent out in early November 2009 also provided details of the information disclosure process. Organisations required to make an information disclosure must do so through the online registry.

Consultation

The purpose of the consultation was to seek views on the Draft Order to Implement the Carbon Reduction Commitment. The consultation also sought feedback on certain policy details for the scheme. The consultation closed on 4 June 2009.