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CRC arrived on 1st April

08 April 2010

Recent surveys studies show how organisations can profit – or lose - from the CRC, and whether FMs are really prepared for the scheme

Businesses could gain net revenue equivalent to 13 percent of their energy costs - or suffer a cost of 28 percent - depending on the approach they take to the Carbon Reduction Commitment (CRC). The findings come in analysis by the consultancy, hurleypalmerflatt, of its clients from the past two years. It found that an organisation with an annual energy spend of £1m per annum would be likely to see a net cost to the business of £280,000 by 2017 if only introducing measures to comply with the CRC's basic requirements.
However, those taking action now to optimise CRC performance could receive net income of £130,000 - and be £410,000 better off than taking a basic compliance approach. The impact is even greater with large multi-national organisations which, over seven years, could be up to £80m better off.
"Those that see the CRC as an opportunity will benefit," explains Stuart Bowman, Energy and Sustainability Director, hurleypalmerflatt. "The CRC is not a tax - companies that understand it and approach it well can end up adding to their bottom line. We are in an era where sound environmental practice makes absolute commercial, as well as ethical, sense."

In another  survey of senior managers responsible for power management at many of the UK’s biggest energy users highlights a staggering degree of ignorance, apathy and confusion about the scheme. The survey was carried out by research company Vanson Bourne who interviewed senior FMs responsible for power management at 100 of the UK’s largest public and private sector organisations, most of whom are likely to qualify for the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme. The survey was originally undertaken for window film specialist, Solar Gard, to understand the attitudes of the UK’s largest energy users towards reducing their carbon footprint. Over half (53 percent) of the UK’s biggest energy users likely to be affected by the scheme do not even realise that they will be affected and that they are required by law to register. If they do not register by the deadline of September 30 they face an immediate fine of £5,000 and an additional daily fine of £500. A single organisation that misses the deadline by a month will face a £20,000 fine. If 53 percent of the 5,000 organisations affected by the scheme miss the deadline by a month, they will collectively accumulate a first month fine of more than £50m.  The survey also found that a third (33 percent) of those who’s organisation almost certainly qualifies for the scheme did not know what their annual energy usage was, despite this being the basic metric for qualifying for the CRC Energy Efficiency Scheme, and  more than a quarter (28 percent) of the UK’s largest energy users who qualify for the scheme do not have a carbon footprint reduction strategy in place.


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