The Carbon Reduction Commitment.
The Chancellor announced on Wednesday the scrapping of CRC from the end of Phase 2, so the final reporting year will be April 2018 to March 2019.
For those unaffected by CRC this wont mean much for the time being at least but for those qualifying businesses an administrative burden will be lifted.
Introduced in April 2010, CRC targeted organisations using in excess of 6,000,000 kWh p.a. and required participants to purchase carbon allowances to cover their electricity and gas usage.
The reporting process itself is onerous, as anyone who has had to complete the submissions will testify, and the carbon bill not insignificant, so the end of CRC could be viewed as a positive step to helping industry.
However, the lost revenue will be recovered from an increase in the Climate Change Levy from April 2019, the aim is make the reform fiscally neutral. It could be argued this would have been the logical approach from the start.
Understanding your potential obligations are key but also understanding how you may qualify for exemptions are crucial to analysing the total cost of energy to your business.
If you would like to find out more in relation to how this may affect your business or to enquire about potential exemptions please get in touch
Contact Liam Conway [email protected] or 07501221728