Guidance

CRC Energy Efficiency Scheme: closure guidance for participants

Information for participants about the closure of the CRC Energy Efficiency Scheme and what they must do.

The CRC energy efficiency scheme will close once the current compliance year has ended on 31 March 2019.

Government decided to close the scheme after consulting on reforms to the way they tax and regulate business energy efficiency. Legislation allowing the scheme to close The CRC Energy Efficiency Scheme (Revocation and Savings) Order 2018 came into force on 1 October 2018.

Participants in CRC phase 2 must carry out their compliance actions for the current compliance year. They will also need to meet certain record keeping requirements until March 2025. Phase 1 participants must keep their records until April 2020.

Actions for participants in CRC phase 2

If you are a CRC participant you must do the following:

  1. Collect your relevant CRC energy data for the year 1 April 2018 to 31 March 2019.

  2. Submit your annual report by 31 July 2019.

  3. Order any allowances you may need between 1 June and 31 July 2019.

  4. Pay for the allowances you have ordered between 2 and 19 September 2019.

  5. Surrender the correct number of allowances to match your commitment by 31 October 2019.

  6. Continue to update contact details on the CRC registry until 31 March 2022.

  7. Keep your evidence pack until 31 March 2025 because the regulators will continue to carry out compliance audits after April 2019.

You will no longer need to:

  1. Collect CRC energy data after 31 March 2019 - although you may have obligations under Streamlined energy and carbon reporting (SECR).
  2. Create and submit annual reports (after the 2018 to 2019 compliance year report).
  3. Register for any further phases.
  4. Pay any further subsistence fees (except fees that you may still owe).

Annual report corrections

If you need to correct your 2018 to 2019 report, or a previous year’s report, you can still do this until 28 February 2022.

If the changes mean that you need more allowances, and these are not available on the secondary market, you can apply for them through a special allowance allocation process. This process will be available until the end of February 2022.

If you need allowances please email CRChelp@environment-agency.gov.uk for advice.

If you have not surrendered enough allowances by the end of February 2022, the administrator can impose a penalty. As a minimum, this penalty will be equal to the value of the allowances shortfall.

Compliance audits and enforcement

The CRC regulators will still carry out compliance audits after April 2019 and will take any enforcement action needed. They may carry on doing this until 31 March 2025, therefore you must keep your evidence packs until that date.

Allowance refunds

Until 31 March 2022 refunds for allowances will be at the discretion of the Secretary of State. The Department for Business, Energy and Industrial Strategy have indicated that the present rules for refunding allowances will not change. After 31 March 2022, the Secretary of State may refund any allowances you have not surrendered.

Streamlined Energy and Carbon Reporting (SECR)

After the closure of CRC some undertakings will need to report their energy consumption and energy efficiency actions as part of their annual director’s report for SECR. This will apply to all UK large undertakings. Find out more about SECR.

Contact CRC

Published 12 March 2019