The CRC Energy Efficiency Scheme consists of an initial phase of three years, followed by subsequent phases of seven years each. However, each of the longer phases includes a two year ‘preparatory phase’ overlapping with the previous phase.
In the run-up to each phase there is a qualification period, a registration period for those that qualify and a footprint year where participants need to calculate their emissions figures and produce a footprint report.
Each phase is divided into compliance years from April to March, in line with tax years. There are four stages to each compliance year:
1. During the first month of each compliance year the government will sell allowances, based on predicted emissions and taking account of planned energy saving initiatives for that year.
2. Energy use is measured through the compliance year and an emissions report has to be submitted by the July following the end of that compliance year.
3. Depending on the measured emissions, participants may choose to either hold or cancel their allowances.
4. In the October following each compliance year, the government will issue revenue recycling payments, based on position in league tables.
Compliance with the scheme is highly dependent on effective collection, auditing and management of data.