The Department of Energy and Climate Change (DECC) has announced a “simplification” of the CRC Energy Efficiency Scheme that it says will cut admin for the scheme by 55% and save participants £272 million.
From 2013 the Performance League Table used to detail performance of participants in the scheme will be abolished. Also from 2013, the number of fuels required for reporting will be reduced from 29 to two – electricity and gas for heating. The aggregated energy use and emissions data of all participants will continue to be published, however.
Meanwhile, state-funded schools will be removed from the scheme altogether and the exemption rule for energy intensive businesses with Climate Change Agreements (CCAs) has been abolished.
“Energy efficiency increases productivity and is good for growth so it is important that we continue to incentivise this through the CRC,” said minister of state for energy Gregory Barker. “We have listened to the concerns of business and radically simplified the scheme in order to cut down on administrative costs and red tape.”
Barker added, “The scheme will now be more flexible and light-touch, saving participants money and helping them to save energy.”
The government has also pledged to review the effectiveness of the CRC in 2016 and to consider whether it is achieving its goals of increasing industrial energy efficiency and carbon reduction. It has said it will consider “alternative approaches” – although further specifics were not forthcoming.
“The shape of the CRC scheme following the 2016 review will depend on the prevailing circumstances at the time of review and upon evaluation of the effectiveness of the scheme in meeting its policy objectives,” a spokesman for DECC told Energy Demand.
However, the tax element introduced in 2010 will certainly be a “strong priority” for removal, DECC said.
Industry commentators welcomed the news as a “positive step in the right direction that towards simplifying the Carbon Reporting landscape”, but warned that the proposals could initially add to the administrative burden on energy managers.
“The timing for some of the proposals, which are planned for introduction mid-way through Phase 1 and will affect reporting for the current year to March 2013, will result in additional work for Energy Managers in the short term as they need to understand and react to the details of the changes to be implemented,” said Steve Wright, chairman of the working group on mandatory carbon reporting at the Energy Managers’ Association.