Summary and implications

On 20 November, the Department of Energy and Climate Change (DECC) issued a consultation seeking industry opinion on a tidy up of the CRC Energy Efficiency Scheme on two issues. The consultation seeks views on:

  • how the CRC can be used to provide incentives for the uptake of onsite renewable electricity, without double-counting; and
  • DECC's proposals to introduce an exemption from the CRC on energy supplied to metallurgical and mineralogical processes, stemming from the changes to the Climate Change Levy announced in the 2013 Budget.

The consultation closes on 17 December 2013. Clients who would like to respond to the consultation can do so by clicking here.

Amendments to the CRC Energy Efficiency Order 2013 (the Order)

DECC believes amendments are needed to the CRC Energy Efficiency Order 2013 to address unintended consequences of drafting related to the two further issues. This consultation follows complaints from industry with regard to the current drafting of the Order, and seeks to:

  • avoid double counting third party energy supplies under the CRC, Climate Change Agreements and EU Emissions Trading Schemes; and
  • provide a more flexible and greater organisational disaggregation process for CRC participants.

The changes will be introduced alongside phase 2 of the CRC in April 2014.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.