How The CRC Affects Your Organisation...
Every organisation that qualifies - or thinks it might qualify - for the Carbon Reduction Commitment should start collecting relevant information on all energy used (electricity, gas, oil etc) over the next few weeks and months.
The initial CRC timetable:
- January to December 2008 is the "qualification" period for measuring the half hourly electricity consumption that forms the baseline
- In September 2009, CRC qualification packs sent to billing addresses for all half hourly meters
- Registration for the CRC will take place between April and September 2010
- April 2010 to March 2011 is the first CO2 "Footprint Year" for which reported energy data will be used to calculate the number of allowances that organisations must purchase
- The first purchase of allowances will take place in April 2011 to cover retrospective emissions during 2010/2011 as well as projected CRC emissions for 2011/2012. So, the Government intends there to be a double sale of CRC allowances in April 2011, and recommends organisations to budget ahead for this
- In October 2011 the first CRC league table will be published, and revenue from the sale of allowances will be recycled to participants
- The second purchase of allowances (for projected 2012/2013 CRC emissions) will be in April 2012
Some other points:
- Recycling payments back to full CRC participants will be based on 1) an organisation's position in the league table, and 2) a measurement of the intensity of an organisation's emissions so as to credit energy efficient growth
- CRC emissions will generally be less than, but at least 90% of total emissions because the administrative burden of reaching 100% could be disproportionate
- There will be a secondary market for the trading of allowances, and the facility to bank allowances for future use
- There are particular rules for the treatment of energy self-generated by an organisation
- Energy used in transport is not included in CRC emissions, and there are other exclusions
- There are penalties for failure to register for the CRC and for failure to provide accurate information and reports
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If you would like further information on the CRC or would like to discuss how we could assist you either with compliance or to reduce your CRC liabilities, please email us at solutions@watt-knots.co.uk with your name and 'phone number and we'll be in touch.
