The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) came into force on the 1st April 2010 and is an EU-wide initiative to encourage major energy users to reduce their carbon emissions. It uses a ‘carrot and stick’ approach of bonuses, penalties and openly published league tables.
There are two levels of participation. Organisations that have half-hourly metering (HHM) and consume over 6,000MWh of electricity per annum are required to participate fully. Those with HHM but consumption of between 3,000MWh and 6,000MWh participate partially, which involves submitting data on carbon emissions.
Fully participating organisations have to monitor their emissions and purchase carbon allowances on the basis of their consumption. Those that improve their energy performance have the potential to receive bonuses to recoup some of or all of the cost of the allowances and additional costs.
Efficient collection and validation of carbon data is proving essential in compiling accurate reports, in compliance with the legislation. Inaccurate data can lead to heavy fines.