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Energy Efficiency Scheme consultation

Posted by Mike in Energy, Policy

EAUC has asked for feedback on the government consultation process for amendments to the CRC Energy Efficiency scheme. The full text of the EAUC’s call for responses follows after the break.

All those institutions affected by the CRCEE scheme will no doubt be
aware of the changes introduced in the comprehensive spending review:

In October’s Spending Review the UK Government announced that the CRC
will be simplified to reduce the burden on businesses, with the first
allowance sale for 2011/12 emissions now taking place in 2012 rather
than 2011. Revenue from the sale of CRC allowances, totalling £1
billion a year by 2014/15, will be used to support the public
finances, including spending on the environment, rather than recycled
to participants.

The implications of this announcement for CRC are:
. In order to clarify the price signal to participants and to support
the public finances, revenue from allowance sales will not be recycled
back to participants by the UK Government.
. The first sale of allowances will take place in 2012 instead of
2011, postponing the financial requirements of the scheme for
participants. Participants will therefore be able to purchase
allowances to cover their 2011/12 emissions at the end of the 2011/12
compliance year. Further decisions on allowance sales are a matter for
the Budget process.
. The Performance League Table will be retained as the main
reputational driver within the scheme, with the metric weightings and
publication dates as envisaged in the current legislation (including
the October 2011 table).

The government has issued a consultation on the scheme in response to
recent stakeholder feedback about the complexity of the scheme.  The
current timescales for the start of the CRC’s second phase are such
that insufficient time exists to action significant changes before
April 2011 – the default start of phase two. This consultation is
therefore primarily focused on postponing the start of the second
phase, in order to provide a window in which to complete the
simplification review and draft appropriate amendments to the CRC
Order.

You can find the consultation document here:

http://www.decc.gov.uk/en/content/cms/consultations/crc_amendment/crc_amendment.aspx

The EAUC Board is aware of discontent in the sector with CRC losing
its motivating payment recycling element and be reduced essentially to
another tax.  This could cost large Universities in the region of an
additional £1M on their energy bills.  Some people are of the view
that CRC should be scrapped as we already have an effective carbon tax
in the form of the Climate Change Levy.  This consultation appears to
be the only opportunity to recommend simplification of government
processes (such as eliminating it altogether) and we need your views
as members to put together a response from the EAUC.

The questions are as follows:

Question 1 – Do you agree with Government’s proposal to extend the
introductory phase and the associated amendments?
Question 2 – Do you agree with Government’s proposal to remove the
information disclosure requirement?
Question 3 – Do you agree with Government’s proposal to amend the
landlord/ tenant rule in respect of Northern Ireland departments?
Question 4 – Do you agree with Government’s proposal to redistribute
the administrators’ responsibilities?
Question 5 – Do you agree with Government’s proposal to update
reference errors in the original order?
Question 6 – Do you agree with Government’s proposal to update the
interpretation definitions?

Please note that responses to the government’s consultation must be
received by 1700 Friday 17 December 2010. So we need responses by
Monday 13th December 2010 to allow time to summarise the responses
from you. We know that many of you may have already responded on
behalf of your institutions, but we think it’s important for
government to also receive the view from the EAUC on behalf of the
sector.

Many thanks for your help in responding to this consultation.

Please respond to info@eauc.org.uk directly.

Kind Regards on behalf of the EAUC Board

Dr Neil Smith
Environment Manager
Ext 26679
07785 265317

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