Carbon reduction commitment

The Carbon Reduction Commitment (CRC) Energy Efficiency Scheme is a UK Government scheme. It’s designed to improve energy efficiency and cut carbon dioxide (CO2) emissions in private and public sector organisations that are high energy users.

If you qualify for CRC, you should have registered by the deadline, for phase two this was 31 January 2014.  Registering late means you could receive a fine of £5,000 with a further fine of £500 per working day until you complete the registration process. The daily fine can be imposed for up to a maximum of 80 working days, up to £40,000.

Full details on whether you qualify can be found at Gov.uk.

Energy already covered under climate change agreements and the EU Emissions Trading System is not included in CRC.

CRC phases

CRC operates in phases. Phase one ran from April 2010 until the end of March 2014. We are now in phase two that runs from 1 April 2014 to 31 March 2019.

For each phase, there is a qualification year. Organisations that meet certain criteria during the qualification year will need to register for the next phase of CRC. The qualification year for phase two was between 1 April 2012 and 31 March 2013.  

Organisations affected by CRC have to register with the Environment Agency at the start of a phase, for the whole phase.

Compliance

In each compliance year, an organisation that has registered for CRC needs to do the following:

  • Collate information about its energy supplies.
  • Submit a report about its energy supplies.
  • Buy and surrender allowances equal to the CO2 emissions it generated.
  • Tell the Environment Agency about changes to its organisation that could affect its registration (designated changes).
  • Keep records about its energy supplies and organisation in an evidence pack.

Further information can be found on Gov.uk.

The Environment Agency (EA) administers the scheme for the United Kingdom. SEPA is the regulator for companies registered in Scotland.

Some public bodies must take part in CRC regardless of how much electricity they use. These are called mandated participants and they include all UK central government departments and devolved administrations.

Contact us

If you have any questions or require any further information or advice on any aspect of CRC, please contact us.