CRC Energy Efficiency Scheme Overview

Qualifying criteria | Overview of penalties | Half Hourly Meter (HHM)

What / When?

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Developed by the UK Government and launched in April 2010, the ‘Carbon Reduction Commitment Energy Efficiency Scheme’ (CRC) has been designed to improve energy efficiency in large public/private sector organisations, as they currently account for 10% of UK carbon emissions.

Working alongside and in addition to other legislation CRC’s aim is to reduce UK carbon emissions by more than 4 million tonnes per year by 2020 and provide,in-part, a mechanism to achieving thetargets set in the Climate Change Act 2008

Qualifying criteria:

Any organisation that had at least one half hourly meter settled (see later explanation on meters) on the half hourly market in 2008 , was required to act under the CRC.

Full participation in the scheme was mandatory for organisations that used more than 6,000MWh of electricity (equivalent to approx. £500,000) in 2008.

Organisations with less than 6,000MWh of electricity usage (in 2008) were not obliged to participate fully but had to make an information disclosure.

Through compulsory annual measuring and reporting of carbon emissions, the cost of an organisation’s carbon will be calculated. This is billed on the previous fiscal year’s outputat the current price of £12/tonne/CO2 . Clearly there is a direct incentive for organisations to reduce their emissions.

Following receipt of a subscription fee, Independent 3rd party assessors carry out the assessments to ensure compliance.

Overview of penalties for:

Failure to provide a footprint report:

If an organisation does not submit a carbon footprint report by the deadline a fixed fine of £5,000 will be imposed.- For every day that the report is late, a further £500/day will be levied.

Incorrect information:

Where the information does not affect the emissions totals, a fine of £5,000 will be levied.

Incorrect reporting:

Fine of £40/ton/CO2 of emissions incorrectly reportedwhere margin of error is found to be greater than 5%.

Non-disclosure:

For every Half Hourly Meter, a one-off fine of £500

Details of each participant’s CO2 emissions are logged into a publicly available performance league table which will largelybe used as a reputational driver, the first of which being made available October 2011. Top performers will be able to clearly demonstrate their commitment to saving energy and reducing carbon emissions, which could lead to an increase in share value.

Table giving definitions of Half Hourly Meter types
About settled half hourly meters (HHMs)
Electricity suppliers use HHMs to calculate your bill. There are four types of metering which can be settled on the half hourly market. These are:

  • mandatory HHMs (which are HHMs required to be installed in certain situations under current legislative requirements
  • voluntary HHMs
  • half-hourly Light Meters, and
  • pseudo HHMs.
  • Mandatory Half Hourly Meters (HHM) supply electricity settled on the half hourly market and are required in situations where the average peak electricity demand over the three months of highest supplies received exceeds 100kW over the previous 12 months. Note; not all half hourly meters trading on the half hourly market are classed as mandatory.
  • Voluntary Half Hourly meters are the same type of meters as the mandatory 100 kW HHMs, however as the title implies, they are installed on a voluntary basis at sites below the 100kW threshold.
  • This is the half hourly electricity market used by suppliers and generators to calculate the balance or imbalance, in what is generated and supplied, using electricity supplies information that is recorded half hourly.
  • Pseudo Half-Hourly Metering is a technique for calculating half hourly electricity supplies where the supply is unmetered. It is defined as a dynamic supply where (i) a set of equipment fixed to land that performs a common function (for example, street lighting), (ii) one element of the set of equipment is metered (for example a lamp post) and (iii) the existing meter point is used as a benchmark to determine the overall supply to the entire set of equipment in a given period.
  • Source: The CRC Energy Efficiency Scheme User Guide

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