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Department of Energy and Climate Change, UK
01 March 2010

One month until Energy Efficiency Scheme starts

Government scheme to save organisations £1billion and more than 4MtCO2 each year by 2020

Today marks the one month countdown to the start of the Government’s new scheme to save organisations money on fuel bills and to reduce carbon emissions.

The CRC Energy Efficiency Scheme will require large public and private sector organisations like supermarkets, hotels, hospitals, local authorities and central government departments, to improve the energy efficiency of their estate. They will be required to take part in the scheme from 1st April.

The aim of the scheme is to help change behaviour and make organisations more energy efficient – to reduce carbon emissions and save money. The financial savings should be significantly greater than any costs arising from participation, and importantly will make carbon a boardroom issue for many large organisations.

Energy and Climate Change Minister Joan Ruddock said:

“There’s just one month to go until the start of the CRC which will see large public and private sector organisations cutting emissions as well as saving money on fuel bills. This is a real opportunity for business and industry to take a leadership role in tackling climate change and gain reputational advantage as a result.”

The Department of Energy and Climate Change and the Environment Agency, which will be running the scheme, have hosted more than 115 events to raise awareness about the scheme as well as running regional workshops and speaking events.

The CRC will help to ensure that organisations play their full role in contributing to the UK’s emissions reductions of at least 34% on 1990 levels by 2020 through improved energy efficiency.

The scheme is mandatory and will save participants around £1billion per year by 2020 through cost effective energy efficiency measures that are not yet being taken up.

By 2020 the scheme is expected to have delivered emissions savings of at least 4.4 Mt CO2 per year.

The scheme will target organisations whose annual half hourly metered (HHM) electricity use is at least 6,000 Megawatt hours (MWh) – typically those that spend £500,000 a year on electricity although all organisation who have a half hourly meter will be required to participate in some way.

Case Studies

The below organisations fall within the remit for CRC and would be happy to be contacted for media purposes;

    Press Office contacts 020 7188 5577 or email: [email protected]
    Press Office contact details: 020 7452 3235 or email: [email protected]
    Press Office contacts: 020 8536 5922 or email: [email protected]

Notes for editors

  1. CRC is a UK wide scheme and the policy has been developed by the Department of Energy and Climate Change, the Scottish Government, the Welsh Assembly Government and the Department of the Environment Northern Ireland.
  2. Analysis of the large private and public organisation sector by the Carbon Trust found significant potential for cost-effective emissions reductions through energy efficiency. Their recent analysis of the non-domestic building sector suggests 70-75% reductions could be made by 2050 at no net cost using options which exist today.
  3. All organisations that had at least one half hourly meter settled on the half hourly market in 2008 will be required to do something under the CRC. Government estimates indicate that around 20,000 public and private sector organisations will be required to participate in some way. The majority of these will simply be required to make an information disclosure once every few years about their electricity usage.
  4. Around 5,000 organisations will be required to participate fully. This means they must not only record and monitor their CO2 emissions, but also purchase allowances equivalent to their emissions each year.
  5. The registration window for CRC will begin in April 2010, and last until the end of September 2010. Participating organisations will have to register with the Environment Agency who will administer the scheme.
  6. The Carbon Trust provides information and advice to businesses and public sector organisations about making energy efficiency changes and can advise on what financial help is available.
  7. You can find further information at www.decc.gov.uk/crc Guidance for scheme participants has been published by the Environment Agency. You can visit the Environment Agency website at http://www.environment-agency.gov.uk/crc[external Link] or contact [email protected] for more information.
  8. The Department of Energy and Climate Change is central to the UK Government’s leadership on climate change. We are pushing hard internationally for ambitious effective and fair action to avert the most dangerous impacts. Through our UK Low Carbon Transition Plan we are giving householders and businesses the incentives and advice they need to cut their emissions, we are enabling the energy sector’s shift to the trinity of renewables, new nuclear and clean coal, and we are stepping up the fight against fuel poverty.