The CRC is designed to be ‘revenue neutral’, meaning that everything paid out by the scheme participants will be recycled back to them.
However, each organisation will not necessarily receive the same amount back as they put in. Depending on league table position, each organisation will receive a penalty or bonus, which initially will be +/- 10%, rising to +/- 50% in year 5. Also, the recycling payment will be based on emissions from the Footprint Year (2010/11), so if an organisation is reducing emissions year on year, it will receive a relatively higher recycling payment than the allowance costs. Alternatively, if an organisations emissions are increasing year on year, its recycling payment will be lower than its allowance costs.
CRC determining factors
In order to consistently benefit from the CRC your organisation must remain towards the top of the league table to keep receiving bonus payments from the scheme. Your position in the league table will be determined by a number of factors:
- The absolute metric: the amount you have reduced emissions compared to previous years.
- The growth metric: your organisation’s emissions per unit of turnover, and
- The early action metric: this is based on the percentage of a company’s consumption monitored by non-mandatory HH metering, such as AMRs or ‘Smart’ metering and the percentage of the company’s emissions covered by energy efficiency accreditation schemes such as the Carbon Trust Standard or equivalent.
For more information please contact us on +44 (0)845 300 8882 or email: em@energ.co.uk