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 need to satisfy the
legislation.
Significant changes to the CRC were announced in the UK
Government Spending Review in October 2010. A consultation is
underway on a simplified version of the CRC Energy Efficiency
Scheme, see details on the
Scottish Government and to respond to the consultation see the
DECC website.