Aardvark News
Carbon Facts - Issue 4
Welcome to CRC Facts Aardvark's series of key updates on the Carbon Reduction Commitment
Policy decisions from DECC have been announced and, at last, the Carbon Reduction Commitment Energy Efficiency Scheme is now fully in the open.
1. Key CRC Policy Changes
- 2008 data now only needs to be 20% accurate and consumption estimated by the utility supplier is now valid;
- No purchasing of allowances required for the 2010 emissions, in April 2011;
- Increased reward in 2012 and 2013 for organisations installing Automatic Meter Readers (AMR), and or achieving the Carbon Trust Standard Level 1 as well as installing renewables;
- The regulatory Obligation is now solely determined by the Companies Act 2006, with the liability now determined by the nature of the supply of energy received, rather than who is paying the bill;
- Significant Group Undertakings (SGUs) can disaggregate themselves from their parent group, meaning that those SGUs which may be able to and/or need to reduce emissions will not be dragged down the league table or be financially penalised by companies who cannot, or for which there is less imperative to reduce emissions;
- The major opportunity is for parent and subsidiary companies to assess any advantages from creating groups of ‘Significant Group Undertakings’ – issues such as the reputation of household brand names, sale or M&A strategies or even HVAC plant replacement schemes could all justify the creation of SGUs.
2. Key CRC Action Timings
- Emissions data platform: integrating with existing company management information software platforms can take many months of negotiation and organisation, emission accuracy needs to be to 5%, across your property portfolio from April 2010, this takes time and needs planning;
- Significant Group Undertakings: a parent company Board may need time this Winter to plan how to group SGUs and the best options for future development plans.
- KPI Reduction Targets: from April 2011, managers will need to be performance managed, so your HR department should roll out a ‘Hearts and Minds’ programme from Spring 2010.
3. Key Recommendations
We recommend that companies do the following:
- Conduct SGU options appraisals in the next 3 months to assess CRC liabilities and reduction potential;
- Start preparing Evidence Packs ready for Registration, our experience indicates that getting to 5% accuracy across a portfolio can take up to 9 months; and
- Review strategy and policy - many companies can, in our experience, demonstrate and meet Carbon Trust Standard Level 1 and gain the benefit of the Early Action Metrics.
We have extensive experience of CCA, EUETS, carbon management and reductions for energy intensive organisations and commercial, industrial, public and charitable clients over the last 10 years - bringing down liabilities and making commercial reductions.
Aardvark has developed a CRC Liability League Table Repayment Calculator - please contact the Aardvark team for further information (contact details below).
Click on the following link for a PDF version of Carbon Facts 4 CRC Facts - 4
Key Contacts
Mark Clayton – Carbon Liabilities markclayton@aardvarkem.co.uk
Nick Leaney – Leases and Building Performance nickleaney@aardvarkem.co.uk
Phil Cookson – Organisational and Operational Boundaries philcookson@aardvarkem.co.uk
Andy Pickersgill – Carbon Trust Standard andypickersgill@aardvarkem.co.uk
Simon Dowse – Lowering Emissions simondowse@aardvarkem.co.uk
Wednesday, 14 October 2009