Carbon Reduction (CRC)
The CRC is a mandatory carbon emissions cap and trade mechanism for non-energy intensive businesses. It is a huge shake up in how companies and local authorities deal with and manage their energy use.
Companies and local authorities with an energy use of 6000MWh and above are required to participate in the scheme and need to be acting now to minimize its impact. There is a lot to consider but do not worry, The Energy Practice can manage the process for you.
The majority of energy savings will come from building stock and usage. The Energy Practice with its engineering and design underpinnings are able to assist, drive and implement practical measures to allow your organisation progress up the league table on reduce your operating costs.
Many organisations will be on the bandwagon offering the ability to identify savings but most will lack our ability to design and engineer the solutions that work.
The Energy Practice provides a turn key solution if required to take on board, run and manages organisations CRC commitments and obligations negatint eh need to employ in house specialists.
Here are some key points about the CRC:
1.Companies and local authorities with an energy use of 6000MWhs per annum or more within 2008/9 are subject to the scheme.
2.It is estimated the CRC will affect between 4,000 to 5,000 businesses and local authorities.
3.Qualifying organizations must register in April 2010.
4.Organisations are required to buy their allowances in April 2011 based on the previous years energy use at a fixed rate of £12 per tCO2.
5.If allowances are not purchased in April 2011 organisations must trade in the spot market applicable to any company that has too few of too many.
6.The minimum possible outlay for an eligible organisation will be £38,000 but it is likely to be much higher.
7.Money gathered from organisations from the sale of allowances will be returned according to their performance in a league table. Position in the league table is dependant on a points system based on penalties and bonuses given for improvements in carbon emission… or not.
8.Organisations unused allowances may be traded or banked for future years.
9.Energy assessment/auditing will be self certified and based on energy suppliers statements. Penalties for incorrect reporting will be financial and proportionate to emissions.
10.Offsite renewables are not included.