The 30 September deadline for registration to the CRC Energy Efficiency Scheme (CRC) is fast approaching. If you have not already done so, you need to consider whether you are affected by it.

The CRC imposes both civil and criminal penalties for non-compliance - including a maximum fine of £45,000 for failing to register. If you have any obligations under the CRC, and you haven’t started work yet, you don’t have any more time to lose.

What is it?

The CRC is a mandatory cap and trade carbon reduction scheme covering the public and private sectors. Organisations who qualify for participation have to measure their energy use and then predict and report their CO2 emissions. From next year, they will also have to purchase allowances to cover the CO2 they emit.

How do I know if my organisation is affected?

Participation in the CRC is based on two criteria:

  1. Whether your organisation buys electricity on the half hourly market;
  2. your organisation’s electricity use in 2008.

If you had at least one half-hourly electricity meter in 2008 and an electricity bill of £500,000 or more, you will probably have to participate. Qualification is based on energy use across entire groups of companies so, while your company may not meet the qualification criteria on its own, your group as a whole maywell do.

Even if your organisation or group does not qualify for participation, you may still have CRC obligations. If your organisation had any half hourly meters in 2008 you will have to make an information disclosure. If your electricity bill in 2008 was more than £250,000 (but less than £500,000), you will have to submit additional information with your information disclosure, demonstrating that you are not eligible for participation in the CRC. The deadline for making information disclosures is the 30 September as well, and failure to submit it on time will also result in penalty fines.

You can also find out more by visiting the following links:

The Environment Agency:

http://www.environment-agency.gov.uk/business/topics/pollution/98263.aspx

Department for Energy and Climate Change:

http://www.decc.gov.uk/en/content/cms/what_we_do/lc_uk/crc/crc.aspx