The Carbon Reduction Commitment (CRC) Energy Efficiency Scheme is a UK government scheme. It’s designed to improve energy efficiency and cut carbon dioxide (CO2) emissions in private and public sector organisations that are high energy users.
The Environment Agency administers the scheme for the UK and regulates the scheme in England. The Scottish Environment Protection Agency, Northern Ireland Environment Agency and Natural Resources Wales regulate the scheme in their own countries.
Energy already covered under climate change agreements and the EU Emissions Trading System is not included in CRC.
Some public bodies must take part in CRC regardless of how much electricity they use. These are called mandated participants and they include all UK central government departments and devolved administrations.
CRC operates in phases. Phase 1 ran from April 2010 until the end of March 2014. We are now in phase 2 that runs from 1 April 2014 to 31 March 2019.
For each phase, there is a qualification year. Organisations that meet certain criteria during the qualification year will need to register for the next phase of CRC. The qualification year for phase 2 was between 1 April 2012 and 31 March 2013.
Organisations affected by CRC have to register with the Environment Agency at the start of a phase, for the whole phase.
In each compliance year, an organisation that has registered for CRC needs to do the following:
- Collate information about its energy supplies
- Submit a report about its energy supplies
- Buy and surrender allowances equal to the CO2 emissions it generated
- Tell the Environment Agency about changes to its organisation that could affect its registration (designated changes)
- Keep records about its energy supplies and organisation in an evidence pack
CRC: Who needs to register
Qualification for CRC is assessed at the group level, not at the individual company or organisation level. You need to identify your entire UK organisational structure, and whether you are part of a group of companies, to work out if you qualify for CRC phase 2.
Your organisation or group qualifies for CRC phase 2 if, between 1 April 2012 and 31 March 2013, it met both of the following criteria:
- Having at least one settled half hourly electricity meter (sHHM).
- Using 6,000 megawatt hours (MWh) or more of qualifying electricity supplied through settled half hourly meters.
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