Your independent energy adviser
0800 051 5770

CRC simplification to save businesses ‘millions’

Simplifications to the often-criticised CRC Energy Efficiency Scheme (CRC) will save businesses £272m and cut the cost of the scheme by 55% according to DECC.

A sigh of relief could have been audible emanating from the FTSE listed boardrooms of Britain as the much-maligned CRC initiative was finally subject to long demanded simplification this week.

Minister of State at the Department of Energy & Climate Change Greg Barker said: “Energy efficiency increases productivity and is good for growth so it is important that we continue to incentivise this through the CRC. We have listened to the concerns of business and radically simplified the scheme in order to cut down on administrative costs and red tape. And we will consider how to encourage new renewable on-site generation through the CRC scheme. The scheme will now be more flexible and light-touch, saving participants money and helping them to save energy”.

The main changes to the CRC scheme are:

  • The much criticised Performance League Table will be abolished (although some data about participants energy usage and emissions will still be published);
  • The number of fuels that participants have to reform on will be cut from 29 to 2, with the scheme now focusing solely on electricity and gas;
  • The scheme will be simplified by removing the ‘90% rule’ and Climate Change Agreements exemption rule;
  • Efforts will be made to reduce the overlap with other climate change legislation;
  • State schools will no longer have to take part in the scheme;
  • And finally the government has committed to considering how the CRC can incentivise the uptake of new onsite renewable self-supplied electricity.

These changes will kick in on 1st June 2013, and the scheme will be reviewed again in 2016.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.