The CRC energy efficiency commitment
The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) came into force on 1st April 2010. It is intended to incentivise large public and private sector organisations to improve their energy performance and to penalise those that take no action. Participants will be placed in a league table each year, with the most improved appearing at the top of the table and the least improved at the bottom. Those at the top will receive maximum bonus and those at the bottom the maximum penalty. while the cash-flow implications of the scheme are not insignificant, the performance incentives and penalties are of modest financial value in the early years of the scheme, with the value at stake amounting to approximately 1 per cent of energy bills in year one*, although this will rise quickly in each subsequent year. The principle that investing in sound energy efficiency projects is financially beneficial is marginally strengthened for CRC participants compared to nonparticipants. But, arguably the intended value at stake presented by the league table approach is more reputational than financial.
