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CRC Energy Efficiency Scheme

Formerly known as the Carbon Reduction Commitment (CRC), this is a mandatory energy efficiency scheme aimed at improving energy efficiency and cutting emissions in large public and private sector organisations.

Under the CRC, large public and private organisations that used more than 6,000 MWh of electricity per year (roughly equivalent to an annual electricity bill of £500K) have a mandatory commitment to purchase and submit sufficient allowances each year to cover their CO2 emissions.

The first reporting year began on 1 April 2010, with the first sales of allowances to be held in April 2011. During the introductory phase, all carbon emission allowances will be sold at a fixed price of £12 per tonne of carbon dioxide. From April 2013, allowances will be auctioned by the Government, with fewer available each year.

Wood fuelled heating systems deliver carbon emissions reductions, which reduces the allowance needed to satisfy the legislation.

For further details of the scheme see the  Scottish Government website and the UK Government website.