A draft order was laid before Parliament on 4 March 2013 designed to simplify the CRC Energy Efficiency Scheme ("CRC") which was first introduced in 2010. The CRC is a mandatory scheme aimed at improving energy efficiency and cutting emissions in large public and private organisations. The CRC scheme is part of the UK's itinerary on meeting its greenhouse emission reduction targets.
A number of participating organisations have criticised the CRC for its complexity, red tape and incompatibility with business operations. As a result, the government conducted a review and consultation of the scheme, leading to the draft order. Key proposals include:
- abolition of the Performance League Tables (PLTs);
- a reduction in fuels from 29 to 2, with emissions from electricity and gas only being covered;
- an organisation-wide 2% de minimis threshold for heating gas; and
- the withdrawal of all state funded schools and Academies in England from the CRC scheme (but with the implementation of alternative measures to incentivise schools to reduce emissions).
The government claims that CRC participants will benefit from less complexity, greater business certainty, and a 55% reduction in overall administrative costs, a saving equating to £275 million by 2030.