Carbon Reduction Commitment Energy Efficiency Scheme Health Facilities Scotland 20 January 2010 1
CRC Energy Efficiency Scheme: The CRC Energy Efficiency Scheme (CRC) is a new mandatory emissions trading scheme for the UK that aims to reduce carbon dioxide (CO 2 ) emissions through Energy Efficiency. Organisations that meet the qualification criteria , which are based on whether they were supplied with electricity by a settled half hourly meter anywhere in the organisation, and how much electricity they were supplied with through half hourly meters in 2008, will have to participate in CRC. Organisations may be fined if they are required to act but fail to do so. 2
CRC Energy Efficiency Scheme Overview: � new mandatory CO 2 emissions trading scheme; � large organisations; � both public and private organisations; � Qualification based on electricity usage in 2008; � purchase of CO 2 allowances for each tonne emitted, and � level of refund dependant on organisation energy performance. 3
Definition of an organisation: In terms of NHSScotland an organisation will be the ‘Board’: � registration fee and annual subsistence charge; � it will include all hospitals, health centres, clinics, offices etc, and � also leased and rented accommodation if the contract for the energy supply is with the Board. 4
Introduction to the CRC Energy Efficiency Scheme: When does it start and who will be included. CRC starts in April 2010. For administrative purposes, the scheme is divided into set time periods known as phases. The first phase is the introductory phase and runs for three years from April 2010. Subsequent phases each last for seven years. The first 2 years of these phases are preparatory, and overlap with the previous phase. � Each phase has: � a qualification period; � a registration period; � a footprint year, and � a series of compliance (Annual Reporting) years. 5
Introductory Phase – Allowances: Allowances are sold by Government during a month long sale at the start of each compliance year: � during the introductory phase, allowances will be sold at a fixed price of £12 per tonne of CO 2 ; � there is no limit to the total number of allowances available to purchase during the April sale periods in the first phase; � the first sale takes place in April 2011, when Boards will purchase allowances: � to cover projected CRC emissions in the financial year 2011/12. Following the initial sale period, participant organisations can buy or sell allowances by trading on the secondary market or by EU ETS. 6
Qualification criteria: Any organisation that has a least one Half Hourly Meter (HHM) settled on the half hourly market must participate in CRC. This can either be: � full participation, or � an information disclosure. 7
Full participation in CRC: Qualification for full participation: � have at least one HHM settled on the half hourly market; � annual electricity usage from all HHMs is equal to or more than 6000 Megawatt hours (MWh) in the Qualifying Year; � requires to register online between 1 April 2010 and 30 September 2010, and pay � the registration fee. 8
Information Disclosure: Making a disclosure: � have at least one HHM settled on the half hourly market; � annual electricity usage from all HHMs is less than 6000MWh in the Qualifying Year; � use the online CRC registry to submit information disclosure; � disclose your actual total consumption if your HHM consumption is between 3000 and 6000MWh in the qualifying year, and � if less than 3000MWh you must ‘tick a box’ online. 9
CRC timeline: � Qualification period – 1 January 2008 to 31 December 2008; � Information on HHMs – during 2009; � CRC begins operating – April 2010; � Introductory Phase – April 2010 to March 2013; � Registration period - 1 April 2010 to 30 September 2010; � First footprint year – April 2010 to March 2011; � First compliance year - April 2010 to March 2011. 10
CRC timeline: CRC Energy Efficiency Scheme Timeline Phases 1 to 3 2008 2010 - 11 2011 - 12 J F M A M J J A S O N D A M J J A S O N D J F M A M J J A S O N D J F M Qualification Phase 1 Registration 2012 - 13 Footprint Year Footprint Report 1st Annual Reporting Year 1st Annual Report A M J J A S O N D J F M 2013 - 14 Introductory Phase1 2nd Annual Report 2nd Annual Reporting Year Reconciliation A M J J A S O N D J F M 3rd Annual Report 3rd Annual Reporting Year Reconciliation Qualification Phase 2 Registration 2014 - 15 Phase 2 Footprint Year Footprint Report 1st Annual Reporting Year 1st Annual Report A M J J A S O N D J F M 2nd Annual Report 2nd Annual Reporting Year Reconciliation 3rd Annual Reporting Year 11
Qualification period – 1 January 2008 to 31 December 2008: � Qualification for CRC is based on the summation of all HHM electricity consumption settled on the half hourly market during the qualification period; � Settled half hourly meters (HHMs) - Electricity suppliers use HHMs to calculate your bill. There are four types of metering which can be settled on the half hourly market. These are: � mandatory HHMs (are HHMs required to be installed in certain situations, in Scotland they are installed if the daily Maximum Demand is 100kW or greater); � voluntary HHMs; � half-hourly Light Meters, and � pseudo HHMs. 12
HHM Information Letters : � All HHM sites will receive a information letters; � this letter will include the 2008 consumption data for the respective meter that will help to calculate your overall Board consumption; � Information Letters will be distributed before during 2009. 13
Registration: All Boards that qualify must register with the online registry between 1 April 2010 and the 30 September 2010. Providing: � information on the organisation; � information on the persons responsible for the organisation’s participation in CRC; � registrant, primary & secondary contacts, senior officer contact, invoice contact and up to 3 account representatives; � a list of all the organisation’s HHMs settled on the half hourly market, and � total half hourly electricity used during the qualifying period, includes all HHMs and qualifying AMRs. 14
Post Registration Footprint – CO 2 Emissions: Your organisation’s total footprint emissions, which are recorded once for each phase, and is the summation of the organisation’s emissions from energy supplies across all sites less those from excluded activities. The Footprint Year, will normally be two years before a phase starts. For the introductory phase, however, it will be April 2010 - March 2011 – which is also the first compliance year. The total Footprint emissions is the summation of all energy supplies used across the organisation from: � electricity; � gas, and � any other fuel types such as, LPG, diesel, etc. 15
Phase 1 Footprint and 1 st Annual Reporting Year: The footprint year (2010/11) is also the 1 st Annual Reporting Year with reports on both due in July 2011. The footprint year is a measure of your organisation’s total CO 2 emissions, against which all other reporting years in the phase will be measured. This is important as, based on this data, the organisation is required to: � buy allowances at the beginning of each year (April) for each tonne of CO 2 they think they will emit in the during year; � record CO 2 emissions during each Reporting Year; � submit the Annual Report to the administrators detailing how much CO 2 they have emitted, and � surrender/reconciliation of allowances in July after the year end for all the CO 2 they have emitted. 16
Calculating CRC Emissions: From an organisation’s total footprint emissions, the emissions that are required to be included in the CRC emissions are calculated.– these are the emissions for which allowances are purchased. There are two rules that determine CRC emissions: 1. All emissions from core sources (detailed on next slide) of energy must be included in your CRC emissions, unless they are covered by EU Emissions Trading System (EU ETS) or CCAs. 2. At least 90% of your total footprint emissions must be regulated either by CRC or by EU ETS or CCAs. The remaining 10%, known as ‘Residual Sources’, of the organisations emissions may be omitted, primarily because the administrative burden of accounting for some very small sources of energy every year would be disproportionately large. 17
Core Sources: Core sources are all emissions from the following sources: � all electricity consumed through HHMs (including pseudo HHM); � all electricity consumed through AMR meters; � all electricity consumed through profile class 5-8 meters; � all daily-read gas meters; � all gas consumed through AMR meters, and � all non-daily metered gas consumption of more than 73,200 kWh per annum. You must include all energy from these core sources in your CRC emissions, unless they are already regulated under EU ETS or CCAs. 18
90% Rule: If, after including all an organisation’s core sources, the CRC emissions have not yet reached the point where 90% of the total footprint emissions are regulated, then some of the residual sources must be included until the organisation’s combined EU ETS, CCAs and CRC coverage level is above the 90% threshold. 19
Recommend
More recommend
