Overhaul of CRC could save businesses £272m

The Government is to simplify the CRC Energy Efficiency Scheme (CRC), claiming the move could save participating businesses £272m in administrative costs up to 2030.

Reforms to the scheme, which aims to ensure industrial energy efficiency and carbon objectives are met, were announced in the Chancellor’s Autumn Statement and will deliver a 55% reduction in costs.

Subject to Parliamentary approval, the changes will come into effect on June 1 2013 and a further review will be held in 2016.

The simplifications, which are a response to a consultation on CRC this year, include abolishing the Performance League Table.

The Minister of State for Energy and Climate Change Gregory Barker argued that this move would not hinder company transparency.

“I understand participants’ concerns around the Performance League Table and have decided to abolish it.

“Participants’ aggregated energy use and emissions data will continue to be made public annually in line with the Government’s transparency agenda, which will ensure that CRC participants’ energy efficiency behaviour remains visible,” he said. 

In addition, the number of fuels that participants are obliged to report against have been reduced from 29 to just two – electricity and gas for heating.

The 90% rule has been removed, as well as the Climate Change Agreement and all state-funded schools in England have been withdrawn from the scheme.

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”.

Conor McGlone

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