With just days left to register for the Carbon Reduction Commitment (CRC) energy expert Gareth Henderson has issued a last minute warning to businesses.

The CRC affects most organisations with a half hourly electricity consumption of over 6,000 MWh per annum, requiring them to purchase allowances of carbon that they expect to emit over the following year.

Failure to register could incur hefty fines and businesses should be putting measures in place to make sure they don’t find themselves penalised by the scheme.

Mr Henderson, Managing Director of energy management consultancy Orchard Energy, said: "At a time when many firms are under financial pressure it makes sense to look at cutting energy use in any event and the incentives available under the CRC scheme make it more important than ever to review these overheads.” 

Analysis at the launch of the CRC found that companies could be underestimating the impact of the regulations and poor performers with an energy bill of £1m could be faced with a £500,000 levy on top of their energy bill over the next five years. Companies who planned and performed well, however, could see their energy costs drop by more than 8% over the same period.*

Find out how Orchard Energy can help you prepare for the CRC deadline and review your energy costs at http://www.orchardenergy.co.uk/carbon-reduction-commitment/carbon-reduction-commitment-crc

*Analysis by PricewaterhouseCoopersLLP

http://www.ukmediacentre.pwc.com/News-Releases/CRC-registration-deadline-costs-and-fines-set-to-hit-sooner-and-be-much-higher-than-expected-warns-PwC-ef8.aspx

Five steps to understanding how the Government’s Carbon Reduction Commitment affects your business.

We all want to make our planet a cleaner and greener place to live and the  Government’s Carbon Reduction Commitment - which came into effect in April - aims to provide an incentive for businesses to reduce their CO2 emissions. The idea is certainly good but every organisation now needs to look carefully at its energy usage and ensure it’s complying fully with the regulations. 
Five steps to understanding CRC:

1. The CRC affects most organisations with a half hourly electricity consumption of over 6,000 MWh (6,000,000kwh’s) per annum (circa £400k).

2. At the start of each year, organisations affected are required to purchase allowances of carbon that they expect to emit over the following year.

3. At the end of each year, organisations covered will be placed in the CRC league table. 4. Carbon allowances will then be refunded based on ranking within the league table.

5. Organisations with poor environmental performance will be penalised, whilst those with good performance will be rewarded. 

If you have half hourly meters you will need to comply in one of three ways: Consumption of up to 3,000 MWh means you have to register at the CRC online registry and supply information about the meters.

Consumption of between 3,000 MWh up to 6,000 MWh means you have an obligation to register and supply information about your group’s UK electricity consumption.

Consumption of 6,000 MWh + requires full compliance including detailed reporting of most carbon emissions for your business and from April 2011 buying allowances for each tonne of CO2 you expect to emit each year. 

Call in the experts
Orchard Energy can help you prepare for the CRCWe have an Energy Solutions team that has been advising clients on carbon markets within CCA for six years. Our services for the CRC include:

1. Preparation for the regulations – diagnostic assessment of readiness, requirements analysis for reporting systems and controls, review of group structures and obligations in the scheme.

2. Assessment and management of the financial impact – predicting the cost impact, developing internal trading schemes to incentivise good performance across the group, incorporating costs into investment appraisal, allowance purchasing strategy.