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Government Announce CRC Scheme Is To Be Abolished

The Government have announced that the Carbon Reduction Commitment (CRC) Scheme is to be abolished.

In a report published in October 2017, the Government have confirmed that the CRC scheme is to be abolished after the 2018-19 compliance year.

The CRC Energy Efficiency Scheme requires around 5,200 individual eligible businesses and public sector organisations to report their energy use and purchase allowances (to cover their carbon emissions) annually. The current phase of the scheme started in 2014 and covers emissions until March 2019.

Alongside the main announcement, further updates were reported as seen by the table below.

In addition, another important update that was declared is the increase in Climate Change Levy (CCL) rates. The increase in rates are due to take effect in April 2019, coinciding with the abolition of the CRC Scheme.

The differences in CCL rates can be seen in the table below.

Following these changes, the Energy Savings Opportunity Scheme (ESOS) will now take priority. Your organisation will qualify for ESOS if any of the three points below are true.

  • Any UK company that employes 250 or more people
  • Any UK company that has an annual turnover in excess of €50,000,000 and an annual balance sheet total in excess of €43,000,000
  • An overseas company with a UK registered establishment which has 250 or more UK employees (which pay income tax in the UK)

The compliance date for Phase 2 of ESOS is the 5th December 2019. If you require an ESOS Lead Assessor for Phase 2, you can contact us on 01268 683494 or email conrad@energyimpact.co.uk.