What is the Carbon Reduction Commitment (CRC) and will it apply to my building?
The CRC is a new scheme due for introduction from 1 April 2010. Aimed at reducing the carbon emissions of non-energy intensive organisations throughout the UK, the CRC is expected to effect about 5,000 organisations in both the public and private sector. Whether the CRC applies to your organisation depend upon the amount of half-hour metered electricity being used across your estate of buildings [both mandatory and voluntary/elective]. If this exceeds 6,000 MWh annually then your organisation’s entire energy use will be subject to the CRC. The qualification year for this assessment is was 2008 and equates approximately to an electricity energy spend around £500k. The CRC itself is a ‘cap and trade’ scheme that requires participants to purchase and then redeem certificates against their energy use. Although revenue neutral to the Exchequer, the CRC will have cash flow implications for qualifying organisations and it has been estimated that an energy saving of 5% will be needed to cover
