The Department for Energy and Climate Change (DECC) has today published a new draft of the CRC Energy Efficiency Scheme allocation regulations. There are three key points of interest:
- Dates for purchase and allocation of allowances
- Price of allowances
The regulations make provision for the sale of allowances in the first phase of the Scheme (2011-12, 2012-13 and 2013-14). Two allocation periods are provided for – an annual Government sale (the primary allocation period) and an opportunity for the Environment Agency to finalise the processing of late requests (the secondary allocation period).
The primary allocation period for buying allowances for the 2011-12 compliance year is 1st June to the last working day of July 2012. Account holders will not be able to request allocations in the secondary period. As the cap has been removed there is no need for the safety valve mechanism, so this has been removed from the regulations.
The price of allowances for 2012 allocation is £12, but it is pointed out that this has been announced for 2012 only, and that future prices are a matter for the Budget process.
The regulations also make provision for the Environment Agency to “require the payment by an account holder who requests an allocation of allowances of a fee of an amount determined by reference to the costs of allocating the allowances”. The regulations do not specify the amount of such a fee.
Local Energy’s Peter Chasmer commented: “These regulations highlight another reason for buying allowances in advance for an entire Phase. Each time you purchase allowances, there is likely to be a fee, whether fixed or a percentage, so by purchasing only once, participants can minimise transaction fees.”
The draft regulations can be found here and comments to DECC are welcome by 10th February 2012.