Extend CRC deadline, say businesses
01 Sep 2010
With only a month to the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) registration deadline, businesses are hoping they will be granted an extension as they fear missing the 30th September cut off.
According to the latest Environment Agency data, only 31%[1] of the anticipated 5,000 full participants have completed their registration. Those that miss the deadline face fines of up to £45,000 and non-compliance will be published.
Anecdotal evidence from energy firm, npower, suggests many businesses are still compiling data and are hopeful that the Environment Agency will extend the deadline to give them more time to complete their submission.
Dave Lewis, head of business energy services at npower, said:
“Businesses are working hard to get the necessary data together, but many are facing challenges in compiling all the information required. It’s likely that some will miss the deadline and secretly, many are hoping the Environment Agency will extend the registration period.
“The problem is that participants have been given plenty of notice of CRC deadlines and the Environment Agency has given no indication that an extension will be given. The best course of action is to stay focused on the 30th September deadline and complete submissions as quickly as possible. There’s still time.”
The CRC will affect many of the UK’s leading retailers, banks, service businesses and large public sector organisations, who will need to purchase allowances to cover their CO2 emissions. The higher their emissions, the greater the number of allowances required.
Participation in the introductory phase is determined using 2008 electricity consumption – organisations with at least one half-hourly settled meter and consumption of 6,000MWh or more through all half-hourly meters during this time, are required to participate in full.
npower is working with a number of businesses to support their registration and believes part of the problem is that many have failed to appreciate the full scale of the task.
“The CRC is aimed at large organisations, many of which have complex estates and metering requirements, and it’s proving challenging to compile the historic billing data required, and taking longer than many anticipated,” adds Lewis.
npower believes the rush to complete registrations could point to potential problems for participants later in the scheme. In April 2011 businesses will need to report on their 2010/11 energy consumption, known in the CRC as the ‘footprint year’. It is crucial that participants get this right as it will become the benchmark for future decisions on allowance purchasing. However, npower research suggests many businesses are not actively tracking their energy use, which could potentially leave them open to costly purchasing mistakes.
The 2010 npower Business Energy Index (nBEI) revealed that 50% of businesses make no measurement of energy efficiency while the importance attached to installing smart meters – a key component in accurately tracking energy consumption – has waned as a result of many businesses operating under cost constraints because of the recession.
“Registration is the focus at the moment because of the deadlines, but it is the beginning of the scheme not the end. The CRC requires businesses to be actively monitoring and reporting on their energy consumption. Those that are not doing this are already on the back foot for the next stage of the scheme,” said Lewis.
ENDS
[1] Environment Agency data released on 23rd August showed 1582 of an anticipated 5,000 full CRC participants had registered
Notes to Editors:
· nBEI research conducted by DataMonitor. In-depth telephone interviews were conducted between January and February 2010 with a sample of 300 UK businesses, comprising 200 small-to medium-sized enterprises (SMEs) with significant energy usage and 100 major energy users (MEUs).
· The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) is a mandatory scheme managed by the Environment Agency on behalf of DECC. Organisations will be required to participate fully in the introductory phase if during 2008 they had at least one half hourly settled electricity meter, together with consumption through all half-hourly electricity meters of 6,000 megawatt hours or more. Approximately 5,000 ‘non energy-intensive’ businesses are expected to participate fully in the scheme. Participants will need to report on their energy and carbon emissions and purchase allowances for the carbon emissions they expect to produce, priced at £12 per tonne of CO2.
· npower is one of the top energy suppliers to the UK business market, serving over 238,000 small to medium sized enterprise sites and around 17,000 industrial and commercial customers, with over 100,000 sites
· npower is dedicated to helping UK businesses use energy more efficiently and therefore spend less money on their bills. We aim to have a positive impact on the communities we serve and reduce our customers’ carbon footprint whilst always improving our service to our customers.
· npower specialises in risk management solutions, including market-leading flexible energy purchasing, energy efficiency, and broader energy management functions, tailored to every size of business.
· npower helps companies monitor and manage energy consumption to bring commercial and environmental benefits. To help achieve this, npower has developed a monitoring and targeting (M&T) tool – encompass. A web-based system, encompass gives businesses accurate and timely information on their energy consumption, providing them with the data they need to implement cost and CO2 reduction policies. The system automatically collects data from half-hourly and smart meters, providing a detailed report on a business’s energy consumption behaviour, and the related cost and environmental impacts of this. With this data, benchmarks can be set and consumption tracked, alongside mapping of carbon use and cost.
· For major energy users, npower offers multi-utility management consultancy to help organisations to improve efficiencies right across the procurement/consumption chain.
· npower customers include BT, Wembley Stadium plc, AstraZeneca and Sainsbury’s
For media information, please call:
Laura Westcott on 0121 713 3768 or 07813 562 717 or email laura.westcott@europe.mccann.com
Amy Rynn on 01905 340572 or email amy.rynn@npower.com
For more information contact: