CRC to Be Simplified to Help Businesses save Millions of Pounds

The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) is to be simplified under new government proposals to save businesses millions of pounds. Edward Davey, the Secretary of State, has announced the changes to "radically cut down on red tape to save businesses money."

The simplification package will include shortening the CRC qualification process; reducing the amount of reporting required by businesses; decreasing the length of time participants will have to keep records; and adopting new emissions factors which will coincide with Greenhouse Gas reporting processes.

Further changes include reducing the number of fuels covered by CRC from 29 to 4; and removing the detailed metrics of the performance league table from the legislation and replacing it with government guidance.

According to the Department of Energy and Climate Change (DECC), who designed the scheme, businesses will see their administrative costs cut by almost two-thirds which equates to around £330 million of savings by the year 2030. This includes administrative cost savings of around £250 million for business and over £300 million savings in the public sector.

Reforming the CRC was reportedly a high priority for business stakeholders who responded to the Red Tape Challenge which was designed to allow the public to scrutinise government regulations and discuss ways to improve them.

Previously just called the Carbon Reduction Commitment, the CRC is a mandatory UK-wide trading scheme which is run day-to-day by the Environment Agency. It is a legally compulsory scheme for organisations that use 6,000,000kWh of electricity or more per year and have at least one half-hourly settled meter. This covers a group of organisations who are collectively responsible for 12% of UK carbon emissions.

Businesses are required to pay a carbon tax of £12 per tonne of CO2 generated and report on their carbon emissions. Businesses are then ranked in a performance league table based upon absolute and relative emissions reductions year on year. Despite it being quite new and only in its second year, proposals have been made to amend the scheme already.

A formal consultation will take place for 12 weeks and the legislation will be changed by the government by April 2013. Apollo Enviro can help businesses become more energy efficient by advising how to reduce your carbon footprint and reduce carbon emissions as well as provide full support services for CRC participants; including reporting, emissions trading and evidence pack collation.

If you are looking for ways of becoming more energy efficient in your business, contact the experts today to find out what they can do for you be it site surveys and environmental audits, or staff training and energy efficient equipment such as voltage optimisation units.