Opinion 


affected by the CRC – essentially any organisation with half-hourly metered electricity supply. For the 25 000 or so organisations this applies to,


they have only until 30th September to prepare and submit an information disclosure on their electricity consumption.


Tis must be an accurate report on electricity use


through half hourly meters (HHM) in 2008, which is being used as the qualification year. Any organisation whose consumption was 6000 MWh through one or more half hourly settled meters or AMR qualifies for the scheme in full, which means they will need to submit more detailed information on their total carbon emissions. From April 2011, full participants will need to emissions for the


purchase allowances to cover CO2


year ahead; the higher their emissions, the greater the number of allowances required. For all involved there are potentially significant financial and reputational implications. Te financial penalties come in missing the 30th


September deadline and by failing to manage carbon emission allowance purchasing adequately. Late registrants will face a fixed fine of £5000, plus an additional £500 per working day per HHM for every day past deadline, up to a maximum of 80 days. While participants who mismanage allowance purchasing and reporting could potentially face an impact on cash flow of hundreds of thousands of pounds, depending on the size of their organisation. And this does not even to consider the impact on corporate reputation of a low position in the CRC’s league table, which will rank participants on how successful they’ve been in reducing their carbon emissions. For some sectors, such as retail which is firmly in the public eye, league table position could be more important than the financial implications of the scheme. With the months fast running out to the


registration deadline, it is these risks that we believe will lead businesses to look at solutions to manage the CRC. And with many still unclear on their obligations, and lacking a strategy and in house expertise, it is likely that businesses will call on specialists such as npower for advice. At npower we are increasingly working with a number of our customers in this way under our new ‘CRC Assist’ service, which supports organisations in managing their CRC obligations. Te service is designed to help businesses understand the CRC scheme; assist them with the development of an energy management strategy; and manage their participation in the scheme including preparation of registration information, compilation of the year end ‘footprint reports’, plus forecasting and guidance on the purchasing of emissions allowances. Tere are very good reasons for working in this way. Quite aside from the peace of mind it provides,


using services like ‘CRC Assist’ should prove to be time and cost effective, negating the need to recruit and train new staff for the task and avoiding the need to establish a suite of processes and procedures or compliance with CRC, thus freeing up valuable internal resources. It could also prove to be more


productive in the long term as the CRC strategy would be based not only on compliance, but on long term goals to deliver energy savings and carbon reductions focused on performing well under the scheme, financially and reputationally, that are linked to a company’s broader business objectives. Te importance of this ongoing strategy cannot be underestimated – while all eyes might be on registration at the moment, we cannot escape the fact that the real focus of the CRC is delivering emissions reduction through energy efficiency. For many establishments this will require a step change in how they manage current and future energy consumption and the implementation of new tools. For example, organisations will need to have detailed plans in place to record and report on their emissions, and then reduce them. Te ability to forecast allowance requirements, understand risk exposure and control cash flow related to allowance purchases will also be crucial. Smart meters should feature as a priority in these


plans. Tese will capture data on energy use which can then be analysed to make informed decisions on energy efficiency.


Armed with this data, participants can take a longer


term view on where energy efficiency measures can be implemented; the capital investment required to deliver these actions; and the expected outcome in terms of energy, and therefore carbon and allowance savings. Businesses that can do this will stand to succeed under the CRC, also enjoying significant cost savings from reduced energy consumption as well as potentially unlocking financial rewards through lower emission allowances purchasing. As former Energy and Climate Change Secretary,


Ed Miliband, put it when the scheme was launched: “Te rewards for businesses who act to cut their carbon emissions are really starting to pay off. It is no longer simply about doing the right thing for the environment, it’s now a sure-fire financial investment.” If you want to take a share in these rewards, the


important thing is to start the work now and if you can’t do this in house, working with a specialist partner could be the best solution for long term success. ●


Dave Lewis is head of business energy services, npower, London, UK. www.npower.com/businessenergy www.engineerlive.com 7


“Smart meters should feature as a priority in plans. These will capture


data on energy use which can then be analysed to


make informed decisions on energy efficiency.”


Dave Lewis, npower.


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