Around 20,000 large public and private sector organisations will be involved in the CRC Energy Efficiency Scheme in some way. The CRC is a new regulatory incentive to improve energy efficiency and reduce the amount of carbon dioxide emitted in the UK. This is vital to achieving the UK’s overall targets of reducing greenhouse gas emissions by at least 80% compared to the 1990 baseline by 2050. . CRC will affect large organisations in both the public and private sector. Organisations that meet the qualification criteria, which are based on how much electricity they were supplied in 2008, will be obliged to participate in CRC. Participating organisations will have to monitor their emissions and purchase allowances, initially sold by Government, for each tonne of carbon dioxide they emit. The more carbon dioxide an organisation emits, the more allowances it has to purchase. So there is a direct incentive for these organisations to reduce their emissions.

All divisions and subsidiaries of your business must be aggregated for the scheme, your involvement should have been confirmed in September 2009 – all energy usage will count against the scheme, apart from transport fuels. You are required to forecast your consumption and buy enough allowances to cover your emissions. The price of allowances will be dictated by classic market supply and demand. Information gathering is relevant right now although the first trading year is 2010-2011. Your eventual position in the league table will indicate how much you reduced emissions and that will impact upon how much revenue you get back.

CRC is a mandatory scheme and it places legal obligations on organisations to disclose information – for larger energy users – to report on emissions and purchase allowances from Government. Any organisation that does not comply with its legal obligations under CRC will be subject to financial penalties.

For more information please visit the Department of Energy & Climate Change

Cheaper Business Energy can assist access the registration process, if you need any assistance please contact us.