EA publishes updated guidance for CRC Phase 1

The Environment Agency has published updated guidance for CRC Phase 1 participants, including detailed advice on the revised reporting requirements for the 2012-13 and 2013-14 compliance years.

This guidance contains a number of changes that take effect immediately, so we strongly recommend that you re-examine your energy supplies at the earliest opportunity. We expect that most participants will have to revise their list of included and excluded supplies and re-evaluate their annual budget for carbon allowances. Main changes to note include:

  1. The scheme will only cover emissions generated from the consumption of electricity and gas
  2. Gas will only need to be reported and allowances purchased when this fuel is used ‘for heating purposes’
  3. There will be no distinction between core and non-core supplies

The first change means that you can disregard all fuels (even if you reported on them previously as part of your Residual Measurement List) except electricity and gas.

The second change allows you to also disregard gas where it is used for anything other than ‘for heating purposes’ (gas supplied to CHP plants is treated as being primarily used for electricity generating purposes and therefore outside the scope of the CRC, so it should not be reported).

The third change – to the definition of supply – means that you must now include:

  • Electricity supplied through all meters except profile class 01 and 02 (so you must report profile class 03 and 04 supplies that you may have previously excluded as non-core)
  • Gas supplied through a meter that measures 73,200kWh in any given compliance year (so you must establish whether each individual supply qualifies for inclusion at the end of each compliance year)

Please note that, although the Footprint Report and Residual Measurement List are no longer required, participants are advised to ensure that copies are kept in the Evidence Pack for the relevant year(s) for audit purposes.

Other changes to the Scheme that may be of interest to public sector participants include:

  • Restriction of the circumstances under which Electricity Generating Credits (EGCs) can be used
  • Extension of the CRC allowance surrender date
  • Abolition of the Performance League Table from 2012-2013 onwards

The timetable for 2012-13 compliance activities is as follows: 

  • 31st July – deadline for submission of annual report
  • 3rd June-31st July – period when orders for carbon allowances may be placed
  • 2nd-20th September – period when payment for carbon allowances may be made
  • 31st October – deadline for surrender of carbon allowances 

The 216-page guidance document can be found on the EA website.