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10 Jun 2011

CRC Footprint Report Guide

This post should provide you with some help and guidance about putting together your CRC footprint report. There are a number of other posts in the CRC help series, click on the CRC tab (above) to see the full list of articles. If you are in urgent need of completing your report before the 29th July deadline, our CRC software and in-house experts will be able to help, click here.

The purpose of the CRC footprint report is to identify CO2 emissions that you are required to declare to the CRC registry. In each following reporting year of the phase, you will also declare CRC emissions on an annual basis.

Footprint year

Under the CRC Energy Efficiency Scheme, participating organisations must submit a footprint report on the last working day of July following the footprint year of each phase. The next footprint report is due on 29th July 2011.

The report for phase one covers the period from 1st April 2010 to 31st March 2011, while the footprint report for phase 2 is due at the end of July 2014. An annual report is due in each subsequent year of the phase. Have a look at the timeline below to see how the scheme is due to run for the next few years:

Crc_timeline_environment_agency

Calculating CRC Emissions

The Environment Agency strongly suggests that you calculate your CRC emissions outside of the CRC Registry and keep record of everything for your evidence pack in case of audit.

Varying levels of CO2 is attributed to different energy supplies when consumed, and the Department for Energy and Climate Change publish a list of emissions factors for specific use in the CRC Energy Efficiency Scheme. At Carbon Calculated, we maintain these formulas in our calculation platform, ensuring that our ECM software and software built and provided by third-parties is always running on the right data and producing the most accurate results.

In order to calculate your CRC liability, you must initially understand your organisation’s total energy use emissions; this is all electricity, gas and other CRC fuels consumed throughout the organisation.  The Environment Agency have then provided a structure for removing excluded emissions sources:

Calculating_crc

Various excluded energy sources (transport etc) must then be removed from the calculation, along with any parts of your organisation covered by Climate Change Agreement (CCA) exemption (note, not CCA exclusion). At this point you arrive at your total footprint emissions:

Crc-calc

You must then use the 90% rule outlined below to ensure that enough emissions are being declared; this is an opportunity to save some expenditure on CRC allowances by only declaring what you absolutely have to.

Once you have calculated at your total regulated emissions with the 90% rule, any emissions attributed to CCA exclusions, or EU-ETS installations are then taken off to arrive at total CRC emissions.

If you have EU-ETS sites or climate change agreements (CCAs) within your organisation, it is important that you understand the rules regarding these as various emissions can be included or excluded.

90% Rule

At least 90% of your organisation’s total footprint emissions must be regulated by the EU-ETS, CCAs, and/or the CRC. This is known as the residual percentage and enables you to calculate total regulated emissions.

When you have arrived at your total footprint emissions, you need to ascertain whether at least 90% of your total footprint emissions are made up of core energy supplies or regulated by the EU-ETS or CCAs. If more than 90% are regulated in this way, you do not have to include any residual fuel supplies in your footprint report. Essentially, you must declare all core energy supplies, EU-ETS or CCA coverage; so if this is 91.47% of emissions, this is what you must declare. This also means that you can remove the residual energy supplies that account for 8.53% of total footprint emissions.

90_percent_rule

IF EU-ETS, CCAs and Core Energy Supplies equal less than 90% of total footprint emissions, then you must include some residual supplies on your report.  You must make list of your residual supplies, a residual measurement list, and choose which fuel supplies should be included in the declaration. It is not necessary to include all supplies of a particular type, but you must include all supplies from an individual site. For example, if you have site A, B and C that all had petrol consumed during the footprint year; you could choose to include all the petrol consumed on site B (and exclude A and C’s supplies), but not just half the petrol consumed on site B.

Once you have used the 90% rule to include or exclude residual fuels, you will have calculated your organisation’s total regulated emissions.

Declaring CRC emissions

CRC emissions are calculated by removing emissions covered by EU-ETS and CCAs from total regulated emissions. These core and residual supplies will have to be reported in each annual reporting year for the remainder of the phase, unless they become covered by EU-ETS, CCAs, or transferred to another organisation. It is important to keep careful record of supplies and exclusions in your evidence pack in case of audit.

You must then enter all your information into the CRC registry, an online system accessible through your organisation’s government gateway account.

You must supply the following information to the CRC registry:

  • Core supplies (excluding EUETS and CCA covered supplies)
  • Residual supplies (excluding EUETS and CCA covered supplies)
  • CCA exempt emissions (all emissions from exempt subsidiaries)
  • EUETS emissions (split into core and residual/non-core)
  • CCA excluded emissions (split into core and residual/non-core)
  • Quantity of Electricity Generating Credits you are eligible to claim
  • The supplies of ‘Other Fuels’ to your organisation

 Useful Links:

CRC Software from Carbon Calculated

Environment Agency CRC report guidance

CRC Registry

Contact Carbon Calculated

7 Apr 2011

CRC Energy Supplies

After an introduction to the CRC Energy Efficiency Scheme, this post should give you an outline of the different types of energy supplies covered by the CRC scheme.

There are 29 energy sources covered in the CRC scheme and it is important that organisations keep a careful record of any consumption from these sources.

In the CRC, energy sources are split into core energy supplies and residual energy supplies. 27 of the 29 energy sources are residual supplies; these must be counted, but not necessarily always declared:

Fuels

CRC Electricity Meters: 

Electricity and Gas in the CRC can be either core or residual supplies, depending on the type of supply and meter associated with that supply.

A core electricity supply is a supply measured by a meter which is one of the following: 

  • settled half hourly meter
  • non-settled half hourly meter
  • a non-domestic meter
  • a dynamic supply

You are able to distinguish the type of supply by identifying the meter profile type; half hourly meters (HHM) are profile "00":

Meter_numbers

AMR meters can be read remotely and capture data on at least a half-hourly basis, while non-domestic meters are generally profile types 05-08 (05, 06, 07 and 08).

Most other types of electricity supplies are classed as residual energy supplies:

Electricity-meter-ecm

CRC Gas Meters: 

In terms of Gas, there are three types of supply that are considered core gas supplies:

  • Daily Read Meter
  • An hourly meter (remotely read AMR meter)
  • A large gas point meter

A large gas point meter is a non-remotely read (AMR or daily read) meter with a supply greater than 73,200 kWh per annum. Most other meters will be non-daily read ≤ 73,200 kWh per annum; these meters are classed as residual supplies.

Here's an example of these meters available in our ECM software:

Gas-meter-ecm

As you can see from the CRC dashboard within ECM, all relevant emissions are routed to either core or residual energy supply. The percentage gives you an easy indication of how much carbon you have to declare in your CRC footprint or annual report:

Crc_core_residual

If you would like to find out some more information about how ECM can help you comply with the CRC Energy Efficiency Scheme, get in touch! You can also follow us on twitter for CRC updates.

More detailed information about the rules and regulations of the CRC Energy Efficiency Scheme can be found on the Enivironent Agency's website.

10 Mar 2011

CRC Energy Efficiency Scheme, an Overview

The CRC Energy Efficiency Scheme, or CRCEES is a compulsory scheme to cut carbon dioxide and improve the energy efficiency of large private and public sector organisations in the UK.

The CRC framework is designed to cut carbon emissions by up to 11.6 million tonnes per year by charging a carbon levy to nearly 3,000 organisations that are responsible for roughly 10 % of the UK's carbon and greenhouse gas emissions.

The UK’s most energy intensive industries are already covered by the European Union Emissions Trading Scheme (EU-ETS) and there are cross-overs between the two systems.

The scheme was first announced in a 2007 white paper from the now defunct Department of Trade and Industry as the Carbon Reduction Commitment and renamed to the CRC Energy Efficiency Scheme in April 2010.

The CRC was initially designed to aid HM Government's initial commitment to reduce UK carbon emissions by 60% by 2050, compared with 1990 levels, however in October 2008 this commitment was revised to an 80% reduction from 1990 levels by 2050.

The CRC scheme is given legal powers by the Climate Change Act, 2008; the world’s first long-term legally binding framework to tackle the dangers of climate change, while full details are given in the CRC Energy Efficiency Scheme Order 2010.

Participation 

All organisations that were supplied with electricity from a settled half-hourly meter in 2008 qualify for the scheme, however, only those organisations that had at least one half-hourly meter and consumed over 6,000 MWh (megawatt hours) of electricity supplied on the half-hourly market are required to participate in the CRC scheme. Additionally, in order to lead by example, all UK central government departments and devolved administrations must participate in the CRC as “mandated participants” no matter how much electricity they consume.

Administration of the scheme is carried out by the Environment Agency who handles registration, reporting and carbon credit transactions via the online CRC registry. Participants can be audited by one of the UK’s regional environment agencies.

CRC Timeline

The CRC Energy Efficiency Scheme (CRCEES) is split into phases. There is a qualification year prior to each phase and participants must submit a footprint report at the start of each phase of the CRC. For the remainder of the phase, organisations must submit a less detailed annual report and buy and sell carbon allowances each year. A performance league table will be published each year with organisations ranked using various coefficients, including the “early action metric”. The CRC reporting year runs from April 1st to 31st March, and organisations must submit reports to the CRC registry by the last working day of July each year.

In July 2012 participating organisations will surrender carbon credits for the first time, priced at £12 per tonne of CO2. These allowances were initially to be recycled and paid back to the best performing organisations, however in October 2010 the Government revised this and will now retain all revenue from participants. This effectively makes the CRC scheme a straight carbon tax on energy emissions.

CRC timeline supplied by the Department of Energy and Climate Change:

Crc_timeline_decc

CRC timeline supplied by the Environment Agency:

Crc_timeline_environment_agency

How can Carbon Calculated help?

Our Enterprise Carbon Management software covers all the rules and regulations of the CRC Energy Efficiency Scheme (CRCEES), allowing you to automatically capture, manage and report  your organisation's CRC emissions.

For more information contact us and follow us on twitter for CRC updates.

 

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News and guidance from the Carbon Calculated team; a bunch of software developers and carbon experts based in London, UK.

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