BBPA Briefing Note

BBPA Briefing Note BBPA briefing note - Carbon Reduction Commitment (CRC) Simplifications The Carbon Reduction Commitment is a mandatory scheme aimed at improving energy efficiency and cutting emissions in large public and private sector organisations. The scheme was intended to mainly cover non-energy intensive businesses e.g. retail outlets, public sector organisations and therefore covers a number of members with managed pub estates. The current phase of CRC phase 1 began 1st April 2011 and covers companies that have a threshold of over 6,000MWh of half-hourly metered electricity. Phase 2 of the scheme is due to start from April 2014. In Phase 1, companies with 25% of energy covered by EU ETS or CCAs were exempt from the scheme. In terms of pub owning companies, those with fairly sizable breweries were generally exempt as they mainly came under CCAs (Climate Change Agreements). CRC simplification The Department for Energy and Climate Change consulted on regulations to simplify the CRC in Autumn 2012 which the BBPA responded to. The Government have now finalised the changes to be made and the order enacting them will come into force on 1st June 2013. The simplification is intended to reduce administration costs of the scheme by 55%. Key Changes to note:  Companies with 25% of their energy use in a CCA should check the energy consumption of the rest of their estate as they may now be brought into the scheme due to the removal of the CCA exemption  Company participants should check the new rules around company structure as there is now greater flexibility with the rules on disaggregation and participation in the scheme Early introduction of some simplifications for the final two reporting years of Phase One (2012/13 and 2013/14), from April 2013:     

Reduction in number of fuels covered, from 29 to 2 2% de minimis threshold for gas Meter-based exclusion for domestic gas supplies with an annual quantity of