As previously reported significant changes to the CRC Energy Efficiency Scheme are being introduced some of which will become effective for the remainder of Phase 1 of the scheme. One such change is the reduction of fuels for CRC purposes to two fuels, electricity and gas (the latter when supplied through the gas network and used for heating purposes only). Recently, the Environment Agency has confirmed that the Department of Energy and Climate Change (DECC) has provided clarification of the policy intent of the meaning of “used for heating purposes”.

Clarification of ‘gas used for heating purposes’

Heating purposes includes space heating and any process that involves heating, other than for generating electricity. The following examples are listed: a process such as cooking, drying or other activity where gas is combusted to generate heat, even if heating is not the final outcome of the process. Participants may assume that all gas consumed was for heating purposes. Where gas for heating purposes is less than 2% of the Participant’s overall electricity consumption in the first year of a phase (as measured in kilowatt-hours) then Participants do not need to report or purchase allowances for emissions related to those supplies.

Please click here to view the Clarification

Further guidance

Further guidance to reflect the changes to the CRC scheme including Phase 2 registration and compliance guidance is expected this year. Updated Phase 1 guidance was published in March.