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CRC consultation closes 17th December

13th December 2010

Written responses to CRC consultation to be submitted by the 17th December

The Department for Energy and Climate Change (DECC) is currently consulting on how to simplify the CRC Energy Efficiency Scheme (CRC).

The proposed changes will amend the CRC Energy Efficiency Scheme Order 2010 SI 768.

The consultation closes on 17 December 2010 with amendments to the legislation expected to come into force on 1 April 2011.

Who will be affected?
The proposed amendments are likely to affect those organisations that are participants or have to make in information disclosure in phase one of the scheme. The proposals may also be of interest to other businesses, public sector organisations, trade associations, non-governmental organisations and charities that may have CRC obligations in future phases.

Why is the scheme under consultation?
Changes to the CRC were announced in the government's spending review, including:

  • simplifying the CRC
  • delaying the first sale of allowances from 2011 to 2012
  • revenue raised from sales of CRC allowances not to be recycled back to participants, instead it is proposed this is to support the public finances,

Although the decision has been made to remove the revenue recycling, the performance league table is to be kept as a reputation incentive for the scheme.

What are the proposed amendments?
The key amendments to the CRC Energy Efficiency scheme include:

  • extending the introductory phase by 12 months, so that it runs until March 2014
  • postponing the start of phase two until April 2013 
  • removing the requirement of organisations with less then 6,000MWh usage to register an information disclosure about their energy use in future phases.

The delay of the start of phase two would allow time to make further amendments to help simplify the CRC.

Commenting on the proposal
You can submit comments on the proposals until 17 December 2010.

Email: CRC@decc.gsi.gov.uk