If you’re a large private or public sector organisation using more than 6,000MWh of electricity a year, recorded through half-hour meters, the Carbon Reduction Commitment Energy Efficiency Scheme (CRCEES) applies to you.
The scheme is mandatory and aims to improve energy efficiency. According to government estimates, it will cut carbon emissions by 1.2 million tonnes per year by 2020.
The scheme is in two phases. The first ran between April 2010 and March 2014. Phase two began on 1 April 2014 and runs until 2019.
The scheme requires you to buy allowances for every tonne of carbon you emit from your energy use. Participants must buy allowances from the government annually to cover their reported emissions. This means organisations that lower their emissions lower their CRC charges. It’s also a great reason to look at your energy consumption and have a strategy for lowering your costs.