How Does the CRC Work?
The CRC scheme will operate by reference to phases and compliance years. It is due to start in April 2010 with a three-year introductory period (“Phase 1”). In April 2011, affected organisations will have to buy allowances to cover their actual energy use during “Year 1”, from April 2010 to March 2011, and their expected energy use for “Year 2”, from April 2011 to March 2012. Reported emissions for Year 1 will set the baseline against which participants’ future performance will be measured. Allowances during Phase 1 will be sold at a fixed price of £12 per tonne of carbon dioxide. To calculate how many tonnes are emitted and therefore how many allowances are required, an organisation’s total energy use will need to be calculated from all electricity, gas, oil and certain other fuel sources (not just half hourly electricity). Organisations are advised to consult their energy suppliers, energy bills and meter readings to calculate their total energy consumption. These figures should then
