Mark Howard
Posted on 14 Oct 2014

Important CRC Alert – Are You Now Excluded?

If you have a building that is subject to the EU Emissions Trading System (EU ETS) because it contains standby boilers or generators, then you may now be able to drop out of the CRC Energy Efficiency Scheme − potentially saving you thousands of pounds!

On 8 October 2014 the Environment Agency published a CRC Update intended to simplify the exclusion of EU Emissions Trading System (EU ETS) from the CRC Energy Efficiency Scheme. 

Following this update, when calculating qualification for CRC Phase 2, you can now exclude gas or electricity supplies to sites where there are EU ETS installations. This approach excludes energy supplies to all of the activities on the site where there is an EU ETS installation − even if some of the activities are not listed within the permit for the EU ETS installation.

Therefore, it looks like all energy supplies to buildings which are subject to the EU ETS are now excluded from CRC Phase 2.

This seems a surprising decision by the Environment Agency, given the potential effect on estates including large, high use, buildings such as office blocks and shopping centres.  At a time when Government is seeking opportunities to maximise revenue we would not be surprised if The Department of Energy and Climate Change (DECC) intervene to 'clarify' this recent EA Update!