Key points

  • On 1 April 2014, amendments were made to the CRC Energy Efficiency Scheme (CRC) by the CRC Energy Efficiency Scheme (Amendment) Order 2014

Background

The CRC is now in its second phase (renamed the initial phase).  The government continues to tweak the scheme in order to simplify it and respond to some of the participants' concerns.

The latest changes, which came into effect on 1 April 2014, address the following areas:

Self-supplied renewable electricity

Consumption of energy from supplies that meet the definition of self-supplied renewable electricity will be reported against a zero emissions conversion factor, provided other government support (such as Renewables Obligation Certificates (ROC) or Feed In Tariff (FIT) scheme payments) has not been received for the same supply. 

In effect, this means that the purchase of CRC allowances will not be required for this energy.  CRC participants may therefore select one of the following options (but not both) for the treatment of onsite renewable self-supplied electricity:

  • receive revenue from the ROC or FIT schemes; or
  • consume the supply (foregoing any ROC and FIT payments) and receive a reduction in CRC liability.

Energy used in metallurgical and mineralogical processes

An exclusion has been introduced for energy used in metallurgical and mineralogical processes.

CCA facilities/EU ETS installations

Where a landlord and tenant relationship exists and the tenant has a CCA facility or EU ETS installation, if the landlord is a CRC participant it will be able to exclude the supplies covered under a CCA certificate or EU ETS permit.  This will avoid double counting of supplies regulated by more than one scheme.

Disaggregation by organisations within a group

Disaggregation allows organisations to register different parts of their business to participate separately in the CRC, rather than the whole group participating as a single entity.  Participants will now be able to disaggregate subsidiaries at any point within a phase of the scheme, by mutual consent.  Previously disaggregation could only take place within a certain period after registration.  This will allow greater flexibility for businesses.

It remains the government's intention to undertake a full review of the CRC in two years' time.