Orchard Energy boss Gareth Henderson said he would be keeping a careful eye on changes to the CRC Energy Efficiency Scheme following announcements in this month’s Government Spending Review.

George Osbourne set out plans for revenue raised by the scheme to go back into the public purse from 2012 rather than being recycled to registered business energy users.

“This decision could impact heavily on large businesses participating in the scheme as they will no longer benefit from cashback incentives,” said Mr Henderson.

“The chancellor has said the CRC system will be simplified but until we have further information about how it will operate in the future it is hard to say exactly how businesses will be affected.”

Mr Henderson said Orchard Energy’s nationwide team of analysts would be kept abreast of the latest changes and would communicate these to their business energy customers.

“We have been advising clients on carbon markets for six years and our analysts  are highly experienced in guiding customers through the CRC process.

“We will continue to assess the financial impact to businesses and how any changes will affect them.”

To find out how Orchard Energy can help manage your business's CRC compliance visit www.orchardenergy.co.uk or call 0844 581 0844.

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

Businesses must register for Carbon Reduction Commitment Energy Efficiency Scheme by Sept 30^th or face fines

BUSINESSES must register with the government's Carbon Reduction Commitment Energy Efficiency Scheme (CRC) by the end of September or face fines of up to £45k.

The mandatory climate change and energy saving scheme requires all non-transport UK organisations, from half hourly meter point users to firms using over 6GW of half hourly electricity per annum, to register and provide details of their energy consumption.  

Gareth Henderson, Managing Director of Orchard Energy, said some of the 20,000 UK organisations likely to be affected were still oblivious to CRC and he urged them to register online with the Environment Agency ahead of the government’s September 30 deadline.

“One area in particular which could be overlooked is where the obligation falls on parent organisations, not entities or sites. This means private equity funds could be responsible for emissions from their portfolio,” he warned.

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.

The scheme provides an incentive to reduce CO² emissions by distributing some of the revenue from the worst to the best performers, but Mr Henderson said the regulations were complex with significant penalties for non-compliance.

“The implications of CRC registration and compliance for organisations are numerous including significant financial burdens, such as up to a 30 per cent increase in energy costs by 2015 for those with poor relative performance, and penalties for non-compliance.”

He added that businesses acting in accordance with the regulations could save money. 

" 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.”

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

Jorvik has become the latest tourist attraction to link up with Orchard as they looks to cut costs without impacting on visitor experience. We are working closely with York Archealogical Trusts director of finance in what is very much a partnership approach to energy management.

Jorvik attracts 400,000 visitors every year and operates eight sites in York including its main Viking attraction in the centre of the city. Orchard have carried out a detailed survey of the energy usage at all its sites to demonstrate the most efficient tariffs, contracts and suppliers for the organisation as a whole.

Orchard also manages energy supplies for Harewood, Eureka Children’s Museum, the Devonshire Estate, Ripley Castle, York Castle and Castle Howard.

We understand that for tourist attractions, venues and museums cutting costs isn’t as straightforward as it is with other businesses because lighting and heating are necessary to create the right ambience.

Orchard is also helping many of these organisations prepare for the Government’s Carbon Reduction Commitment to avoid fines for non compliance.

Further information:

www.jorvik-viking-centre.co.uk

www.carbontrust.co.uk/.../carbon-reduction-commitment.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.