CRC update

Key changes to the CRC detailed in the final Government response in the consultation exercise

Name change
CRC now known as the CRC Energy Efficiency Scheme (CRC)

Cash flow
The first sale of allowances in April 2011 now only requires participants to purchase for the year ahead (April 2011 - March 2012) and not for the first compliance year which now becomes a reporting year only. The revenue raised from the Government sale of allowances in April 2011 will be recycled to participants in July 2011. The recycle payment you receive is determined by your Year 1 baseline emissions (Apr 2010-Mar 2011) and your performance league table position for Year 1. The latter is 100% determined by the Early Action Metric and will be published in July 2011 to coincide with the recycling payments.

Principle subsidiaries
Large subsidiaries that would qualify for the CRC in their own right can choose to disaggregate themselves and participate independently of the parent company.

Early action metric
The weighting for the early action metric has been increased in the introductory phase: Carbon Trust Standard and voluntary AMR coverage will count for 100% of the performance score in Year 1, 40% in Year 2 and 20% in Year 3.

Landlord/Tenant responsibilities
No change – the landlord cannot transfer responsibility for emissions to the tenant where the landlord is responsible for the supply. Where the tenant is responsible for the supply (i.e. has the contract with supplier) the tenant will be responsible for those emissions in the CRC.

Domestic households
No change – domestic household consumption will be excluded from the CRC

To see how we can help you become CRC compliant please click here. We also offer a free online assessment that will calculate your financial exposure to the CRC scheme and analyse your state of readiness.