One Year Until the End of CRC
April 24, 2018
Carbon Reduction Commitment to be replaced by Climate Change Levy
April marks the final 12 months until the end of CRC.
CRC was introduced to improve energy efficiency and reduce carbon emissions, the CRC (Carbon Reduction Commitment) is a government scheme that applies to organisations using more than 6,000 MWh of Half Hourly electricity per year.
In an effort to simplify businesses energy taxes, CRC will be phased out and replaced by an increase in CCL (Climate Change Levy) from April 2019. The change will mean that businesses will only need to pay on tax on energy through suppliers. CRC participants will have to submit their final report by July 2019
Although the tax change is intended to be revenue neutral as a whole for government, there will be significant impacts on individual businesses. For example we know of businesses that have CRC costs, but are exempt from CCL. Provided the scope of CCL does not change, these business will see significant cost savings. Likewise, customers with large energy spends that are almost all Non Half-Hourly (NHH) metered and are not required to participate in CRC currently will pay the increased CCL, so they will see an increase in costs from this change.
Discounts in CCL and incentives will be available for businesses that take part in work aimed at energy efficiency.
Ignite Energy Expertise
Ignite has a vast amount of experience in carbon reduction and have helped many organisations with their CRC requirements. With the upcoming changes, we can help you to fully understand the impact it will have to your business and ensure you’re positioned to take advantage of any available savings.
Contact us today to learn how we can help you understand energy consumption and billing for your business