About The CRC Energy Efficiency Scheme
The CRC Energy Efficiency Scheme (formerly known as the Carbon Reduction Commitment) is a mandatory energy saving scheme being introduced by the government to improve energy efficiency and reduce carbon dioxide emissions in large UK organisations.
Due to start in April 2010, the scheme will operate as a 'cap and trade' mechanism. A price will be put on corporate carbon emissions, thereby providing a financial incentive for companies to reduce their energy use.
The money raised by the allowances will be cycled back to scheme participants according to how well they perform. There will also be an annual league table to rank participating companies by their energy efficiency performance. Together with the reputational and financial considerations, the scheme encourages organisations to develop energy management strategies that promote a better understanding and reduction of energy consumption.
The scheme will cover around 20,000 large public and private sector companies, which are responsible for about 10 percent of the UK’s emissions. Qualifying organisations will have to comply legally with the scheme or face financial and other penalties. Organisations will be eligible for the scheme if:
*The company (and its subsidiaries) has at least one half-hourly electricity meter (HHM) settled on the half-hourly market
*Their total half-hourly electricity consumption exceeded 6,000 megawatt-hours (MWh) during 2008
To find our more about the CRC Energy Efficiency Scheme and whether it will affect your business, visit the government’s department of energy and climate change website
