This week the Department for Energy and Climate Change have launched a consultation into the CRC Energy Scheme (CRC), which targets emissions from large public and private sector organisations. The consultation documents will include proposals to streamline and simplify the scheme for businesses delivering energy efficiency objectives, whilst also making compliance easier and cheaper for participants. However, we are concerned that simplification could mean that green firms who have already invested heavily in carbon offsetting will effectively have to pay twice.
Dr Duncan Tytler, Utilitywise Technical Director said: “CRC was a good idea in its original format as it rewarded big energy users who implemented energy efficiency measures and taxed those who did nothing. “Moving the system to be a flat tax doesn’t incentivise firms, so the modified CRC will need to reward energy efficiency with some form of credit in addition to the energy saved.”
We would urge all businesses to voice their concerns to the Government and we are asking politicians to recognise the need for better incentives to encourage firms generating their own energy, making energy savings or using offset products like our Carbon Zero for Energy.
Darren Sutherland Utilitywise Energy Manager said: “It looks like the CRC is here to stay given the various pledges to reduce the UK’s carbon footprint it will be impossible to scrap the scheme entirely. “The likelihood is this that sooner or later this scheme will be extended to more companies, so even if you’re not affected now, you may well be in the future.
“The only way you can guarantee smaller bills in the future is to take action now to reduce your energy costs.” Adam Thompson, Utilitywise Chief Operating Officer added: “Energy costs are one of the major pressures businesses of all shapes and sizes face and the biggest savings in energy costs come from reducing consumption.”