A guide for businesses
Carbon Reduction
Commitment (CRC)
Scheme
Carbon Reduction Commitment Scheme A Guide for Businesses
Summary
The Carbon Reduction Commitment
(CRC) Energy Efficiency Scheme
Climate change remains a hot topic. The CRC Energy
Efficiency Scheme, set up by the Environment Agency in
April 2010, is a mandatory climate change and energy-saving
scheme for the UK, aimed at encouraging large public and
private sector organisations to reduce their carbon dioxide
(CO2) emissions through improved energy efficiency.
It supports the goal of reducing the UK’s greenhouse
gas by at least 80% by 2050¹, as outlined in the Climate
Change Act (2008).
-80%
Phase 1 has been in place since April 2010
and the registration period for Phase 2
of the scheme is now open and runs until
31st January 2014.
If your organisation meets the criteria for
reporting, you must register by this date
or you could face hefty penalties, including
an initial fine of up to £45,000.
Carbon Reduction Commitment Scheme A Guide for Businesses
Does your
organisation
qualify for
Phase 2 of
the scheme?
The CRC Energy Efficiency Scheme is
intended to target organisations that
use a lot of energy who will offset costs
from participating against savings on
their energy bills. It is mandatory for
your organisation to participate in the
scheme if:
• You use more than 6000 megawatt hours (MWh) of
electricity each year through settled half hourly meters.
For your guidance, this equates to an annual energy bill
of around £500,000
And
• You have at least one settled half hourly electricity meter.2
ANNUA
ENERG L
Y BILL
If your organisation meets these criteria, you must register
as a participant via the CRC Registry by 31 January 2014.
Some public sector organisations must participate in the
scheme irrespective of the amount of electricity they
consume. You can check if this applies to your organisation by
following this link to the Environment Agency website:
www.environmentagency.gov.uk/business/topics/
pollution/126698.aspx
The period of assessment is 1/4/12 – 31/03/13. Even if your
consumption has declined since this period, so you no longer
qualify, you must report on your usage during that time.
£500,0
00
How do you check if you have a settled half hourly
meter?
You need to find the MPAN (Meter Point Administration
Number), a 13 digit number which should be displayed on a
sticker on the meter. If the line above the MPAN starts with 00
(England, Scotland and Wales) you have a settled half-hourly
meter. In Northern Ireland, look for your MPRN (Meter Point
Reference Number), an 11 digit number that starts with an 8.
Carbon Reduction Commitment Scheme A Guide for Businesses
I qualify, what do I do?
If your business complies with the requirements
you need to register by 31 January 2014.
2014
31
JAN
You must then report your annual gas and
electricity use. In June each year, you must
purchase carbon allowances for every
reported tonne of carbon emitted by your
organisation in the previous financial year.
The government uses the revenue
from allowance sales to support further
environmental initiatives.
How do organisations register?
You need to register online at:
crc.environmentagency.gov.uk/crcregistry/
web/login?execution=e1s1
You should be aware that:
• You must provide all information within
28 days of registration
What do businesses need to report?
You must disclose the following:
• Details about your settled half-hourly
meters (sHHM) – including MPAN
or MPRN numbers
• The megawatt hours (MWh) information
about your total sHHM electricity supply
during the reporting period.
Certain electricity usage is excluded from
the CRC scheme and should not be included
in your calculations and reporting.
Visit the Environment Agency’s website to
find out more about these exclusions:
www.environment-agency.gov.uk/business/
topics/pollution/126698.aspx
• You will need to pay a £950 fee when
you register and an annual subscription
fee of £12903*
To request your CRC statement, please email the British Gas
support team at [email protected] by 31st March 2014.
You will need to provide the following information:
• Your CRC Registration ID. This is the unique code
you will receive after registering for the scheme
via the Environment Agency’s website
•A
list of all the supply points for energy within
your business along with your account numbers
*
Costs correct at time of publication
• If you are a broker or consultant working on behalf
of a customer, please provide a letter of authority for
our records.
If you request your Annual Statement of Supply by
31 March 2014, we will provide it within six weeks of the
end of the CRC year.
Carbon Reduction Commitment Scheme A Guide for Businesses
We’re here to help you!
British Gas can support you with the Carbon Reduction
Commitment (CRC), European Emissions Trading Scheme,
Climate Change Agreements and any new and changing carbon
legislation. Our service includes data tracking, creating evidence
packs, allowance forecasting, annual reporting and audits.
Find out more
For further information, please contact our support team at [email protected]
or visit our website: www.britishgas.co.uk/corporate/energy-services/legislation/carbon-compliance-and-reduction
More useful links
You can find more information about the CRC Energy Efficiency Scheme on the Environment Agency’s website:
www.environment-agency.gov.uk/business/topics/pollution/146885.aspx
Updates on the CRC consultation and simplifications to the scheme are available online from the Department of
Energy & Climate Change (DECC): www.gov.uk/government/organisations/department-of-energy-climate-change
References/sources:
www.gov.uk/crc-energy-efficiency-scheme
www.environment-agency.gov.uk/business/topics/pollution/146885.aspx
www.gov.uk/government/organisations/department-of-energy-climate-change
www.carbontrust.com/
1
and 2 http://www.environment-agency.gov.uk
3
http://www.environment-agency.gov.uk/business/topics/pollution/129040.aspx