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Quick Guide to CRC Energy Efficiency Scheme

04 January 2012

A free ‘Quick Guide to the CRC Energy Efficiency Scheme’ has been launched by ENER-G and Cornwall Energy Associates to help organisations reduce the impact of the new energy tax that will apply to larger energy users in 2012

Under the CRC, energy intensive organisations are required to buy allowances from the government to cover emissions from 2011 to 2012 at a price equivalent to £12/tCO2, which could add an extra 0.65p/kWh to electricity costs and 0.22p/kWh to gas costs.

CRC affects all public and private sector organisations consuming more than 6,000 MWh/year through their half-hourly electricity meters. This equates to approximately £500,000 plus energy spend per year. Between them, these organisations are said to be responsible for 10% of all UK carbon emissions.

The CRC scheme doesn’t affect those organisations which are already subject to Climate Change Agreements or the EU Emissions Trading Scheme. Organisations with at least one half-hourly meter that consumed less than 6,000MWh in 2008 must make an information disclosure but are not required to participate in the CRC.

“Important changes to the CRC for next year are still being finalised by the government which should simplify the scheme. Meanwhile, it is crucial that organisations take preparatory steps now to measure and manage their energy use,” said Mark Alston, General Manager for ENER-G Procurement.

He continued: “What is clear is that failure to prepare will lead to reputational damage from poor rankings in the CRC League Table, additional cost from the CRC tax itself and heavy fines for non-compliance. The guide explains what is coming next from the CRC scheme and the steps organisations can take to boost their CRC performance.

“In the first CRC performance league table published in November 2011, 40% of organisations were ranked bottom of the league for failing to take the ‘early action’ measures of installing smart meters to measure and monitor their energy consumption, or obtaining a certificate for energy management.

“This failure will cost those organisations dear in 2012 when the taxation elements kick-in, but they are also missing huge opportunities now. If they don’t measure their energy consumption accurately they can’t possibly bring it fully under control and reap the significant cost savings that this brings.”

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