Draft CRC Order published

1st March 2013

Following a period of consultation the energy and climate department (DECC) has published the draft CRC Energy Efficiency Scheme Order which implements the simplification proposals of the scheme. Subject to Parliamentary approval, the draft order will establish a trading period of five consecutive phases, each lasting five years, with the initial phase due to start on 01 April 2014.

Guidance for registration for phase 2 will be published in April and more extensive guidance on CRC participation in phase 2 will be published in the autumn.

The main changes to the CRC Scheme will be:

• Performance League Tables abolished however participants’ aggregated energy use and emission data will still be published (DECC and the EA are still in consultation on the form of future carbon metrics to be released);
• The Regulator will no longer be mandated to publish information relating to participants’ performance;
• No longer a requirement to provide a footprint report;
• Reduction in the number of fuels that are within the scope of the order. Participants will only have to report electricity and gas (for heating purposes only) instead of the 29 fuels included previously;
• A 2% de minimis threshold will be introduced for reporting gas supplies;
• The 90% rules has been removed meaning participants will be required to report 100% of energy and gas supplies (subject to the de minimis for gas);
• There will be two fixed price sales of allowances per year in phase 2 with the deadline for the surrender of allowances being extended from July to the end of October. Allowances can be banked within a phase but not between phases;
• Qualification criteria from phase 2 onwards will be based on electricity supplies to settled half hourly meters only and applications for registration for the next phase must be completed within 2 months of the phase commencing (by 31 January 2014 for phase 2);
• State funded schools in England will no longer be required to participate in the scheme from phase 2 onwards;
• CCS and EU ETS supplies will no longer need to be accounted for when assessing qualification;
• CRC obligations will be passed from the landlord to the tenant where there is a construction lease arrangement for 30 years or more, the tenant agrees to construct/remove any buildings and the tenant agrees to be responsible for installation of any gas, electricity or water services.

The draft CRC Energy Efficiency Scheme Order 2013 has been published on the legislation.gov.uk website: