The Carbon Reduction Commitment Energy Efficiency Scheme

The CRC Energy Efficiency Scheme (also known as the Carbon Reduction Commitment Scheme) is a mandatory initiative from the UK Government which came into force in April 2010. The aim of the CRC Energy Efficiency Scheme is to lower national carbon emissions by encouraging businesses to become more energy efficient.

The UK is committed to a reduction of at least 80% from 1990 levels by 2050. The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) has therefore been designed to focus UK business on this goal.

Who does it apply to?

Any UK organisation/business that has at least one half hourly meter and that uses 6,000 MWh per annum (this equates to around £500,000 in yearly energy bills).

How will it work?

Businesses will have to monitor their emissions and purchase carbon credits initially sold by the government for each tonne of CO2 they emit. The more emissions, the more credits they will have to purchase!

When do you need to register?

Organisations that are required to take action under the scheme must either submit their information disclosure or register as a participant with the administrator by September 2010.

Winners and losers

Public and private organisations that emit large amounts of CO2 will have to purchase allowances to cover their emissions each year. The total revenues will then be redistributed among the participants, with each receiving either a bonus or a penalty, depending on how effectively they reduce emissions.

Once the CRC is underway a league table will show the relative performance of CRC participants in terms of their efforts to reduce carbon dioxide emissions.

How can 7formation help you?

Any businesses that sufficiently reduce energy costs through low-energy lighting, thermal insulation, motor control, upgraded equipment and other initiatives will:

• benefit from lower energy bills
• lessen the financial impact of being forced to buy carbon credits under the scheme
• gain great PR from climbing the CRC league table
• turn their carbon credits into profit at the end of each financial year.

At 7formation we have the resources, knowledge and expertise to assist in the design, sourcing and installation of energy reducing elements such as heating, lighting, HVAC etc.

Warehouse saves over £20,000 a year

7formation recently completed an energy efficient lighting replacement scheme for a commercial warehouse that resulted in projected energy bill savings of nearly £21,000 a year.