Carbon Reduction Commitment (CRC) Energy Scheme

The CRC Energy Efficiency Scheme is a new regulatory incentive designed to improve both public and private sector energy consumption in the UK. The scheme is mandatory and intends to encourage improved energy efficiency in organisations and therefore reduce overall CO₂ output. Participating organisations are required to purchase allowances for each tonne of CO₂ they emit, providing a direct incentive for organisations to reduce their emissions and subsequently reduce the allowances purchased. Therefore, improvements in energy efficiency have two key benefits: Reduction in the amount of ‘allowances’ to be bought and a reduction in overall energy expenditure throughout the year.

In addition, the government will produce a publically available ‘league table’ of all organisations within the scheme. This details the comparative performance of participants and essentially acts as a ‘name-and-shame’ for poorly performing organisations.

How can Torse help?

Whatever stage you’re at, whatever the size and consumption of your business, Torse can provide honest, informative and reliable solutions regarding your Carbon Reduction Commitment responsibilities. Our experienced team of experts are able to ensure your complete CRC requirements are not just met, but exceeded, ensuring your success within this new carbon reduction initiative.

At Torse, we make it easy for you to reduce energy consumption and carbon emissions. If you qualify for the CRC Energy Efficiency Scheme, our CRC service will ensure you hit all the targets and deadlines.

CRC Scheme Benefits

Compliance from start to finish. Reducing risk of costly fines and penalties.
Energy efficiency and reduction consultancy. Ensuring your organisation performs strongly throughout.
Ensuring CRC League table success. You gain from possible reputational factors of the CRC scheme.
The Carbon Trust Standard Certification

Common CRC Questions

What is the CRC (Carbon Reduction Commitment) Energy Efficiency Scheme?

The CRC Energy Efficiency Scheme is mandatory emissions trading initiative, recently introduced within the UK to reduce the levels of carbon dioxide emissions within the environment. Participating organisations are required to monitor and reduce their energy usage and purchase allowances for each tonne of CO₂ they emit. The greater the levels of CO₂ emitted, the more allowances that organisation will purchase, therefore acting as a deterrent to excessive energy consumption. At the end of each compliance year (31st March), all participants must surrender allowances equivalent to their emissions released. The government will then produce and publish a comparative ‘performance league table’ which will allow identification of the best and worst performers respectively. Heavy financial penalties will be imposed on organisations that are required to participate but fail to do so.
Which organisations are affected by CRC?

Participation within the CRC scheme is based on the quantities of energy supplied to an entire organisation, not individual units. Those that, throughout 2008, had a minimum of one settled half hourly electricity meter and consumed 6000 megawatt hours (MWh) or more are required to register as a CRC participant. Organisations that during 2008, had at least one settle half hourly meter but did not consume 6000 megawatt hours (MWh) of electricity are required to make an information disclosure. Here, there is no requirement to report on emissions generated, or to worry about purchasing allowances.
Which organisations are not included in the CRC scheme?

Organisations are not required at present to participate within the scheme if: They are billed for electricity and gas usage quarterly or annually. More than 25% of their emissions are covered by Climate Change Agreement (CCA) Emissions are regulated under the European Union Emission Trading Scheme (EUETS)
How is the CRC scheme administered?

The Environment Agency is the administrator for registering and running the initiative and selling allowances on behalf of the government. Energy auditing and taking action for non-compliance is the responsibility of the regulators – in England and Wales the Environment Agency, the Scottish Environment Protection Agency and the Northern Ireland Environmental Agency.
How much does it cost to register for the CRC Energy Efficiency Scheme?

The government has imposed a £950 charge for full participation within the scheme.

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Guide to Terminology

Ultimate Parent

The intent of this definition is to identify where responsibility within an organisation or group of businesses lies for CRC obligations. Qualification is assessed on the basis of qualifying electricity supply to the whole organisation.

Information Disclosure

Even if you have one half hourly meter settled on the half hourly market (in the qualification year 2008) and do not qualify for full participation yet ie <6 million KWHs, you will still need to report consumption data and administration details for the whole organisation to the Environment Agency.

Settled Meter

A settled meter is able to measure electricity supplied at least every half hour and is used by electricity suppliers, generators, distributors and transmitters to calculate the balance or imbalance between electricity generated and consumed. Your Energy Broker or your electricity supplier will be able to confirm whether the organisation has any HHMs settled on the half-hourly market.

CRC Administrator or Agent

A Broker or Consultancy that is registered with The Environment Agency (see Torse Registration CRC4393565) to manage collation of all energy data and responsible for submission to the Environment Agency on your behalf. This They will ensure this is done in a timely fashion, thus avoiding potential financial penalties for the business.