CRC Energy Efficiency Scheme Details Announced

Just recently more details about the CRC Energy Efficiency Scheme were announced. This scheme will put public and private sector firms against one another to make the greatest savings on power bills possible. However, until now, most people did not know many details about the scheme as a whole.

The first thing that people wanted to know was why is it being introduced in the first place. The Department of Energy and Climate Change came up with the CRC, which stands for Carbon Reduction Commitment, to help deliver on the UK’s pledge to reduce its greenhouse emissions by 2050.

Now the next thing that people wanted to know, was who this new scheme will even affect. Well, according to reports, all public and private sector organizations that used at least one half hourly electricity meter during 2008 qualify for the CRC scheme.

Thus, this brings up one more really good question. How does this scheme even work? Well apparently the CRC Energy Efficiency Scheme will be phased in over three years. Once the scheme is fully operational, participants will be required to monitor their emissions and purchase allowances for each tonne of CO2 that they emit at the beginning of the year. The first main sale of allowances happens in April of 2011, and will cover projected CO2 emissions form April 2011 to March of 2012.

The scheme is said to be revenue neutral overall. This means that all of the money raised from the main sales is redistributed back to participants. The scheme will be run by the Environment Agency. The agency is also the scheme’s regulator for England and Wales.