CRC Reporting Reminder
Environmental update 03/08/2011
Businesses obligated under the CRC Energy Efficiency Scheme are
required to record and report their carbon emissions. This will
help the Environment Agency to monitor and verify compliance and
performance. Footprint reports and annual reports were
required to be submitted by 29th July 2011.
More information and guidance is available from the Environment
Agency:
http://www.environment-agency.gov.uk/business/127429.aspx?dm_i=2WX,GMN8,9NLV0,1CSCJ,1
Changes to the CRC
The Department for Energy and Climate Change (DECC)
announced on 30th June 2011 proposals to modify the Carbon
Reduction Commitment Energy Efficiency Scheme (CRC).
New legislation will be made in 2012, which will come into
effect in April 2013. This means that CRC participants must comply
with the current CRC requirements for the entire first phase of the
scheme.
The key proposed changes include:
- Participation in the scheme - will be based on
electricity consumption through settled half-hourly meters only.
The consumption threshold of 6,000 MWh per year may be lowered to
ensure that the level of participation in the scheme is
similar.
- No auction of allowances - there will be two
annual sales of allowances, at fixed prices. The first will be on
the basis of forecast requirements for allowances and the second
will be to enable the purchase of any additional allowances
required to match emissions. The price of allowances in the second
annual sale will be higher.
- Range of fuels reduced – participants will be
required to report only on electricity, natural gas, and kerosene
and diesel used for heating. This is a substantial reduction in the
types of fuel to be reported.
- Removal of the 90% rule – the requirement to
calculate at least 90% of emissions has been removed, so there is
no need to produce a footprint report (as the basis for identifying
the 90% sources).
- Amended CCA and EU ETS exemptions –
electricity consumption at EU ETS sites will no longer be included
in determining participation in the CRC, and EU ETS sites will not
be required to purchase allowances for electricity use. Similarly,
electricity supplied to CCA sites will not be counted for
determining participation, and CCA sites will not be required to
purchase allowances.
- There will be various changes to simplify organisational rules
and also changes to the landlord/tenant rule.
These changes will not come into effect until
2013. Participants therefore must submit their footprint
report by the end of July and comply with the requirements for next
year, including the submission of an emissions report and the
retrospective purchase of allowances, at £12 per tonne.
The proposals are available to download from the DECC
website
(http://www.decc.gov.uk/en/content/cms/emissions/crc_efficiency/crc_efficiency.aspx).
The consultation is open until 2nd September 2011.