One month and counting until CRC launch

The government yesterday urged businesses to ensure they are ready for the introduction of its Carbon Reduction Commitment (CRC) energy efficiency scheme when it comes into effect at the start of next month.

Under the scheme, any organisation with half-hourly electricity meters – an estimated 20,000 firms and public sector bodies – will have to register with the Environment Agency, while about 5,000 of the heaviest electricity users will have to partake in the full scheme and report annually on their energy use and carbon emissions.

A spokesman for the Department of Energy and Climate Change said such companies will have until September to register with the Environment Agency, although those organisations using more than 6,000 Megawatt hours (MWh) of electricity a year will be required to begin measuring how much power they use from 1 April.

They will have to file emission data with the government from next year, which will be used to compile a national league table based on organisations' carbon emissions and energy efficiency improvements.

Participating organisations will also have to purchase carbon allowances in line with their emissions each year. The best-performing participants in the scheme each year will receive back the money they spend on allowances along with an additional bonus, while the worst-performing organisations will see a financial penalty taken from their rebates from the scheme.

Energy and climate change minister Joan Ruddock said the scheme would help businesses and public sector bodies to enhance their energy efficiency and reduce costs.

"There's just one month to go until the start of the CRC, which will see large public and private sector organisations cutting emissions as well as saving money on fuel bills," she said. "This is a real opportunity for business and industry to take a leadership role in tackling climate change and gain reputational advantage as a result."

However, experts have expressed concerns that many businesses and public sector agencies are ill prepared for the scheme.

A survey last autumn suggested that only a third of businesses were fully prepared, while consultancy McKinnon & Clarke released a similar report last month which warned that many firms were not ready for the scheme. According to a poll to accompany the report, 54 per cent of firms were unsure if they exceeded the 6,000MWh qualifying mark.

The spokesman for DECC said the government was confident there was a high level of awareness and understanding around the legislation. "Both DECC and the Environment Agency have been proactive in meeting with businesses and explaining the legislation at a large number of events," he said.