Government Response to the Consultation on Simplifying the CRC Energy Efficiency Scheme

Book excerpt: The CRC Energy Efficiency Scheme (CRC) is a mandatory UK-wide trading scheme designed to incentivise large public and private sector organisations to take up cost-effective energy efficiency opportunities, so helping to drive down consumption and protect energy security. The Government issued proposals (http://www.decc.gov.uk/assets/decc/11/consultation/CRC/4757-cons-simp-crc-energy-efficiency-scheme.pdf) to simplify the scheme, to make it easier and simpler for businesses to feel the benefits of using less energy, as well as supporting jobs in the energy savings industry. The 46 proposals were intended to: address stakeholder concerns about complexity and associated administrative costs; provide greater business certainty; allow for greater flexibility; reduce the reporting burden; reduce the scheme complexity; and reduce the overlap with other schemes. The proposals received broadly positive feedback and the Government intends to implement most proposals as set out in the consultation document. Eight proposals are being changed. The simplification proposals will reduce the administrative costs of participants by more than 55%, savings of some £272 million by 2030. This paper sets out the responses to each proposal, and the action the Government is taking to implement them. The majority of proposals will be implemented in the second phase of the scheme in 2014-15.