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Detail of outcome
This document summarises the comments received, and sets out the Government’s response and next steps. Following the consultation, the Government now intends to implement the proposals as set out in the consultation document. In addition, we have taken this opportunity to make a few technical improvements to the 2013 Order, which we hope will provide clarification for participants and are set out in Annex 1.
The Final Impact Assessment focussing on two measures for finalising CRC simplification (treatment of renewable energy and the metallurgical and mineralogical sectors) was published alongside the laying of CRC Energy Efficiency Scheme (Amendment) Order 2014 in the UK and Devolved Administration legislatures.
Our proposal is to deliver the commitment given in the Government Response on simplifying the CRC Energy Efficiency Scheme in December 2012 to consider how the CRC can incentivise the uptake of onsite renewable self-supplied electricity. In addition, to introduce an exemption to energy supplied to metallurgical and mineralogical processes, which arise from changes to the Climate Change Levy, announced by the Chancellor in the 2013 Budget.
The consultation document also draws attention to a further two issues where we believe the current wording of the ‘CRC Energy Efficiency Scheme Order 2013’ is not quite right in delivering our policy intent. We are therefore proposing to amend the 2013 Order to avoid the double counting of third party energy supplies under the CRC, Climate Change Agreements and EU Emissions Trading Schemes, and allowing more flexible and greater organisational disaggregation by CRC participants.
As part of our scoping work for delivering these changes, we undertook a review of the CRC Order which led to this consultation.