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Carbon - The new budget to balance

When it's time for you to deliver a reduction in your energy consumption, how much can you really afford? How are you going to approach the problem without constraining your business?

Unlike other many other consultancies, we believe that cultural change and server virtualisation represents only part of the solution.

Our role is to help you plan and design a strategy to mitigate this new system of taxation and capitalize on the opportunities presented by The Carbon Reduction Commitment Energy Efficiency Scheme.

The Rules

If the electricity spend across all of your sites is over 500,000 a year, or in energy terms over 6000 MWh per year, you must comply with the government's new mandatory carbon emissions reduction scheme, due to be launched in April 2010. Failure to register will cost your organisation a 5,000 fine plus 500 per day of non-compliance. Attempts to deceive the CRC can result in prison sentences.

The UK is committed to a 20% reduction in CO2 emissions by 2020 compared to 1990 levels; which means that we will need to mitigate the last 20 years of growth in addition to saving 20%. The UK is currently failing to meet its targets.

The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) has been designed to focus UK business on this goal through a new emissions trading scheme.

If you have at least one Half Hourly Meter, settled on the half hourly market, but your total electricity consumption through all HHMs was less than 6,000 MWh over the course of the qualification period, you must make an information disclosure under CRC.

If you consume more than 3,000 MWh in the qualification year, you must also disclose your total annual consumption of half hourly electricity during the period. This is to improve the data available to Government on energy use in the target sector.

Full participants in the Carbon Reduction Commitment scheme will be required to monitor their CO2 emissions and purchase allowances, which are currently quoted at a price of 12 per tonne of CO2.

Even if you don't meet the registration criteria for full participation or informational disclosure, a new emissions trading scheme is coming to a Business near you. The roll-out has begun.

The Answers

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Last modified: 12/07/09