CRC warning over energy management gaps

London - With only months until the Carbon Reduction Commitment (CRC) takes effect, energy management technology provider t-mac Technologies is warning UK businesses to record and lower their energy use now in order to reduce unnecessary overheads in the future.

From April 2010 the CRC, the UK Government's first mandatory emissions trading scheme, will aim to calculate businesses’ annual energy usage and penalise excessive users with monetary charges based upon their overall carbon consumption in 2008.

The CRC aims to help large non-energy intensive businesses to reduce their emissions and thereby save money through improved efficiency. It is anticipated that it will affect around 20,000 businesses in the UK, including government departments, retailers, banks and local authorities.

Lisa Wilkinson, director of t-mac, explains: "Many organisations still do not know how the CRC will affect them. If businesses hold off monitoring and recording their energy use they will pay for it in the future. However, proactive businesses can start monitoring and recording their energy use now by implementing a number of easy measures such as installing smart metering devices with CRC measurement and management software.

t-mac is currently launching a CRC monitoring feature to its software suite, which will allow businesses to compare consumption figures daily against carbon credits purchased to ensure they do not over-use and face further fines.

Wilkinson continues: “Automatic Monitoring and Targeting (aM&T) systems can accurately manage energy usage within their carbon allowance purchased, identify areas for improvement to reduce costs, reduce the carbon credit requirements for the following year, and help business move up the CRC league-table."

The software will also provide reports to assist in the annual auditing process required as part of the CRC.


The Carbon Reduction Commitment

• All businesses with half-hourly meters will need to determine their electricity use for 2008 by the start of 2010, based upon information provided by their suppliers.
• Businesses with energy consumption greater than 6,000 MWh (equivalent to £5000.00) will be included in the CRC scheme and will receive qualifying letters in September 2009. This will result in a requirement to purchase carbon allowances for the amount used thorough the 2008 qualifying year.
• Carbon allowances will be based upon 90% of total consumption in 2008, so companies need to ensure that their annual usage in 2010 onwards falls within these carbon allowances.
• Businesses will also be rated against all other companies within the CRC and they will receive bonuses, or will be penalised, in accordance with where they feature on the ‘leader board’. In the first three years of the CRC, carbon emissions savings made by businesses will result in a surplus of carbon allowance which they can carry over into the following year.