2016 budget reveals abolition of CRC!

CRC refers to the UK Government’s Carbon Reduction Commitment Energy Efficiency Scheme. The aim of this scheme is to improve energy efficiency and reduce carbon dioxide (CO2) emissions from both public and private intensive energy users.

Don’t spend too long memorising what it stands for as it is on the way out! As part of the recent 2016 Budget, the Chancellor announced the abolition of the CRC scheme by the end of the 2018 -2019 compliance year. It will be replaced by a higher CCL charge. This move will simplify how energy intense users pay for and comply with the UK’s transition to a lower carbon future.

Replacing CRC with a higher rate of CCL is expected to be cost neutral strategy for the government. The real winners will be the participating organisations that were obliged to spend many hours and financial resources to participate in the scheme. No longer will these organisations have to comply with multiple carbon reduction related schemes. Abolishing the programme will save UK business countless hours and pounds worth of administration and compliance burden, time and money that can now be spent addressing day to day business operations and investing in energy efficiency improvements instead of reporting.

Whilst it is on the way out, it isn’t dead just yet. This is a reminder to all CRC participants to submit Customer Own Reads on any meter, gas or electricity, that is not read automatically. A Customer Own Read or COR submitted in early April will enable your supplier and in turn yourself to report actual consumption figures instead of estimates. Estimated consumption can be used for CRC reporting, but it is subject to a 10% uplift when it represents more than half of the year, so submit actual reads to help lower your annual consumption figures and improve your CRC reporting status.

If you need help complying with CRC please get in touch with either your supplier or Direct Power for advice. Elsewhere, we have found Lexology to be useful website containing detailed information on this subject.


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