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CRC simplified to save businesses millions of pounds

The CRC Energy Efficiency Scheme (CRC) will be dramatically simplified in order to save participating businesses and public sector organisations millions of pounds in administrative costs.

The reforms to the scheme were announced in the Chancellor’s Autumn Statement and will deliver a 55% reduction in costs, saving around £272 million for participants:

  • The Government will simplify the CRC from 2013 and the Performance League Table will be abolished.
  • The Government will review the effectiveness of the CRC in 2016. This review will consider whether the CRC remains the appropriate policy to meet industrial energy efficiency and carbon reduction objectives, and will consider alternative approaches that could achieve the same objectives. The tax element of the CRC introduced at Spending Review 2010 will be a high priority for removal when the public finances allow.

The simplification of the scheme will make it easier for businesses to feel the benefits of using less energy, and will also support jobs in the energy savings industry through further incentivising demand for energy efficient products and services.

Minister of State Gregory Barker said:

Energy efficiency increases productivity and is good for growth so it is important that we continue to incentivise this through the CRC.

“We have listened to the concerns of business and radically simplified the scheme in order to cut down on administrative costs and red tape. And we will consider how to encourage new renewable on-site generation through the CRC scheme.

“The scheme will now be more flexible and light-touch, saving participants money and helping them to save energy”.

Read the DECC press notice in full

Department for Energy and Climate Change

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