1 CRC Energy Efficiency Scheme Submitting an Annual Report by grb15373


									CRC Energy Efficiency Scheme

Submitting an Annual Report

During each phase of the CRC Energy Efficiency Scheme (CRC), a
participant has a number of obligations.

The first obligation is to submit a footprint report for the footprint year. A
footprint report is required once for each phase of CRC.

At the end of each annual reporting year a participant must submit an annual
report. The report must be submitted via the CRC Registry system no later
than the last working day in July following the annual reporting year, which
runs from 1 April to 31 March.

Introductory phase (phase 1)

In the introductory phase, the footprint year and first annual reporting year
cover the same period (1 April 2010 to 31 March 2011); hence the first annual
report must be submitted by the same deadline as the footprint report.

There are three annual reporting years in the introductory phase, ending 31
March 2011, 2012 and 2013.

Subsequent phases

In phase 2 and subsequent phases - each of which lasts seven years - a
footprint report must be submitted after the end of the footprint year.
Thereafter, an annual report must be submitted each annual reporting year for
the remainder of the phase.

Who will need to submit an annual report?
Every organisation that qualifies as a participant in CRC must submit an
annual report as part of its compliance requirements.

What preparation is needed?
To report annual emissions you will need to prepare information on your
energy supplies during the annual reporting year, which you must then enter
into the CRC registry to submit your report. You will need to gather records of
the supplies that make up your CRC emissions for your entire organisation or
group, as determined in your footprint report.1

    These are made up of:
        −   Core electricity that is not supplied to an EU ETS installation or a CCA facility
        −   Core gas that is not supplied to an EU ETS installation or a CCA facility

You will be required to enter a figure for the quantity of each fuel type you
have used for the whole organisation. The layout of the screen you will use to
report this is shown below:

   −   Any supplies listed in the residual measurement list, if you compiled one as part of your footprint report
   −   Other fuels, not on the residual measurement list, that make up your CRC emissions

If your organisation includes any Significant Group Undertakings (SGUs) you
will also need to report an emissions total for each SGU in your annual report.

If you have chosen to disaggregate any SGUs and these have registered to
participate in their own right, they will be required to submit their own annual
report. You do not need to include the emissions of a disaggregated SGU in
your annual report.

The CRC registry will convert your energy supply data into CO2 emissions by
applying an emissions factor for each fuel type. A list of emission factors will
be published on the Environment Agency website.

Use of estimation techniques
If you do not hold complete records (e.g. annual statement from the energy
supplier, bills covering the period of the annual reporting year, or delivery
invoices) for an annual reporting year, you may estimate your supplies and
use the estimated data in your report. For any 12 month period in which
estimated data accounts for greater than six months, you should report your
data as ‘estimated’. These supplies will be subject to an uplift of 10%. If your
estimate covers six months or less, you may report it as ‘actual’ data.

Electricity generating credits
There are two circumstances where you may be able to claim credits for
electricity you have generated:

   (i)    where you have used fuel supplies to generate electricity and have
          included the supply of the primary input fuel in your annual report
   (ii)   where you generate electricity from renewable sources but have not
          received a subsidy in the form of either a Renewables Obligation
          Certificate (ROC) or Feed In Tariff (FIT)

When you input data for your annual report, you should enter the amount of
electricity you have generated in kWh.

Electricity generation from renewable sources
If you generate electricity and receive a ROC or FIT, and export it to the grid
or to another user, you do not need to report the amount as a supply you have
consumed but you cannot claim an electricity generating credit for it.

If you generate electricity which is consumed by you, for which you hold a
ROC or FIT, you will need to report the amount as electricity supplied at the
grid average emissions factor. This is known as applying a `renewables

Once the annual reporting year has passed, the Environment Agency will
publish a report to highlight the investment in onsite renewable energy by

participants – this refers to electricity that participants generate and use
onsite, not to electricity that has been exported to the grid or a third party.

Data will be published that covers the CO2 savings from the increase in onsite
renewable energy generation, and from absolute savings made by
participants through increased energy efficiency, via the Performance League
Table (PLT).

Growth metric
In addition to your energy consumption, you will report:

    • Your turnover (£) if you are in the private sector, or;
    • Your revenue expenditure (£), if you are an organisation in the public

In both cases, the figure you report should be the figure declared in your most
recent annual report. The system will calculate the amount of emissions per £
turnover or revenue expenditure.

In calculating your Growth metric score, the growth or decline in your
organisation will be assessed against your emissions. Participants that
demonstrate they can grow or decline efficiently will score better in the Growth
metric and this will be reflected in your performance in the PLT.

Early Action Metric
In the annual report, you also have the opportunity to report any initiatives you
have taken that are eligible under the Early Action metric. These are;

    •   Certification under the Carbon Trust Standard, or an equivalent
    •   Voluntary installation of AMR metering.

In both cases, you should report the percentage of your total CRC emissions
that are covered by each of the two elements that make up the Early Action

Absolute metric
The Absolute metric measures the absolute reduction or increase in a
participant’s emissions over time. The Absolute metric will be assessed using
your CRC emissions figure, for the given annual reporting year, relative to
your average annual emissions over the preceding five years of the scheme,
or since the scheme started, whichever is the shorter period.

How do I submit an annual report for the compliance year?

Before you submit an annual report, you will need to be registered with the
CRC Registry as a primary contact, a secondary contact or an account

Step 1: When you select the annual reporting year for which you wish to
report, the system will display any CCA exemption(s) you have.

Step 2: The system will then ask you to record your energy supplies by type
of energy: core electricity and gas, other electricity and gas, other fuel types.
You will record your supplies of fuels for the whole organisation or group.

Step 3: You will then be asked for data for the Early Action metric – the
percentage of your supplies that is certified under the Carbon Trust Standard
or an equivalent, and supplies through voluntarily installed AMR meters.

Step 4: You will then enter Growth metric data. You will enter either your
total revenue expenditure (public sector) or turnover (private sector).

Step 5: The system will ask you to answer four voluntary questions on your
organisation’s actions regarding Corporate Responsibility. You can choose to
answers these ‘Yes’, ‘No’ or ‘No Answer’.

Summary: Once you have completed these sections of the report, the system
displays a summary of the emissions, calculated from the data you have
entered, as follows:

    •   Total CO2 emissions (t/CO2)
    •   the percentage of your emissions that are covered by the early action
    •   annual emissions per unit of revenue expenditure (public sector) or of
        turnover (other sectors) which are taken into the calculation of the
        growth metric.

It also displays two rolling averages over the preceding years – up to a
maximum of five years. The averages displayed are:

    •   Your Growth metric average
    •   Your CRC emissions

You are asked to confirm that the information in the report is correct before
submitting your annual report.

Failure to comply – penalties
There are civil penalties for failing to comply with the CRC requirement to
submit an annual report. If you fail to report your annual emissions, you will
incur penalties: an immediate fine of £5,000 for failure to submit an annual

report by the deadline, followed by a further fine of £500 for each working day
the report is delayed, up to a maximum of 40 working days.

After that period the total accumulated fine incurred at the daily rate will be
doubled. E.g. [£5,000 + (40 * £500)] * 2.

In addition, your performance commitment, i.e. the number of allowances you
need to buy, will be doubled. You will be placed at the bottom of the PLT.


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