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The CRC EES is a mandatory Carbon Reporting Scheme in the UK. Organisations with HH electricity consumption of more than 6,000MWh in 2012 have to participate in Phase 2.

THE SCHEME

Carbon Reduction Commitment Energy Efficiency Scheme (CRC EES) is a scheme in the United Kingdom which applies to large non energy-intensive organisations in the public and private sectors. The purpose of the scheme is to help reducing the UK’s carbon emissions by 80% by 2050 (against 1990 emissions). The organisations CRC scheme targets are responsible for around 10% of the UK’s emissions. The scheme is designed to tackle CO2 emissions not already covered by Climate Change Agreements (CCAs) and the EU Emissions Trading Scheme (EU ETS).

Summarised below is to to aid both private and public sector organisations that may qualify as participants for Phase 2 of the CRC EES, by providing insight into qualification criteria for the phase, assessment process and the next steps.

PHASE 1

Phase 1 started 1st April 2010 and runs until 31st March 2014. Organisations that meet Phase 1 qualification criteria based on how much of half hourly metered electricity they were supplied during 2008, were obliged to participate in the scheme. Organisations that consumed more than 6,000 MWh per year qualified for full participation and had to register with the Environment Agency, the administrator, for the scheme. After the end of each compliance year participating organisations had to submit annual reports and purchase allowances, sold by the government, for each tCO2 they emitted. Allowance price during Phase 1 is fixed at £12 per tCO2.

CHANGES AND SIMPLIFICATION

Initial changes to the scheme include the removal of recycling of allowances to participants as a result of the 2010 spending review. In addition, the requirement for information disclosures has been removed; Phase 1 has been extended resulting in the postponement to the start of the second and subsequent phases and alignment of the footprint years.

The most recent changes announced by the Government as part of the 2012 Autumn Statement among other things limited CRC EES exposure to only electricity and gas, introduced a 2% de minimis rule for gas, abolished Performance League Table and eliminated so-called CCA Group & Member exemptions for the Phase 2.

PHASE 2 QUALIFICATION

Phase 2 will run from 1st April 2014 until 31st March 2019. Organisations that are not mandated participants qualify for Phase 2 if they, or their group, meet both the criteria below between 1 April 2012 and 31 March 2013:
• They had at least one settled half hourly electricity meter, and

• They consumed 6,000 MWh or more of qualifying electricity supplied on the settled half hourly market.

Mandated participants are organisations to whom the qualification criteria set out below don’t apply. They must register for CRC as a participant regardless of whether they meet the criteria. Mandated participants are government departments, Scottish Ministers, Welsh Assembly Government and Northern Ireland departments.

WHAT USES ARE EXCLUDED?

Supplies excluded when assessing qualification for Phase 2 of CRC EES are:

  • self-supplied electricity used directly for generation, transmission or distribution of electricity and any electricity used for transporting, supplying or shipping gas;
  • unconsumed electricity where an organisation passes on some or all of its supply of electricity, and this is measured by a metering device or a device that measures electricity but doesn’t charge for it;
  • those affected by the landlord tenant rule, however these arrangements must be longer than 30 years;
  • those used where a construction lease applies;
  • electricity and gas consumed for the purpose of operating an EU ETS installation;
  • electricity and gas consumed for the purpose of operating a certified CCA facility;
  • energy supplied for the purposes of domestic, emergency accommodations and caravan sites, or for domestic accommodations in mixed use buildings:
  • those used for fuelling transport , except for electric, non-road going vehicles;
  • energy that is used outside the UK and its territorial waters;
  • passive pseudo (unmetered) half hourly and pseudo non half hourly ones.

 

WHAT NEXT?

  • Organisations that meet the qualification criteria between 1 April 2012 and 31 March 2013 will have to register between 4th November 2013 and 31st January 2014.Organisations that do not meet the qualification criteria will have to report Nonparticipation between 4th November 2013 and 31st January 2014For LCEA Ltd to be able to assess organisation’s qualification in Phase 2, the following types of information should be provided:
  • organisation structure, indicating any member(s) of the organisation that may be wished to participate separately (disaggregation)
  • contact details for individuals within the organisation
  • meter & electricity information, indicating supplier(s) covering year 2012/13
  • information on all your excluded uses based on the above list.

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Low Carbon Energy Assessors (LCEA) Ltd (6682232) a limited company registered in England and Wales and regulated by The Royal Institution of Chartered Surveyors Regulation Authority.