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CRC Energy Efficiency Scheme

This is a new piece of legislation being introduced by the Government in 2010 to encourage businesses to adopt a policy of reducing their energy consumption and that of reducing their Carbon Footprint. Registration to the scheme is mandatory and will commence in September 2009. The legislation is not yet finally in place but the following is a taster of what is expected.

Businesses with an annual energy bill around £500,000.00 will attract an energy tax of approximately £35,000.00, approx 7% of the total energy costs comprising of all gas, electricity, oil, etc. This tax will be purchased up front as credits from the Government.

If the company exceeds the energy consumption they will have to buy further energy credits, however these further credits will NOT be available from the Government, only from the open market.

Conversely if the company saves on its energy consumption then that company will have credits to sell on the open market.

Another issue to be resolved is that a company could be the ultimate Holding Company of say 20 number businesses, and that Holding Company is the nominated energy user for the whole of the group, it is this ultimate company that will be responsible for the purchase of energy and the energy tax. This issue is one that is at present in a state of flux and final legislation is to be issued within the next 3 months.

Steve Elphick is at present attending Government sponsored seminars as a member of the Low Carbon Energy Assessor’s, and is in a position to advise Companies and Business’s as to a suitable energy programme and plan of financial action that is to be adopted in order to comply with the legislation.