Carbon Reduction

The Rules surrounding the Carbon Reduction Commitment (CRC) have changed over several years. Unmetered energy within the CRC was originally poorly defined by the scheme leading to some unintended detrimental consequences.

Some definitions:

  • Dynamic pseudo Half Hourly – data from a PECU Array and/or any Central Management System (CMS) is used to calculate the unmetered energy consumption
  • Passive Half Hourly – uses the deemed sunrise/sunset times to calculate the unmetered energy consumption. This method of trading does not use data from an array or any CMS
  • Non Half Hourly – the Estimated Annual Consumption (EAC) is calculated by the DNO/UMSO using the published annual hours. It does not make use of an array or any CMS

From the initiation of the scheme in 2010, unmetered energy traded as Dynamic Half Hourly has been subject to CRC payments, whereas unmetered energy traded in other ways was not. This led to most unmetered energy being traded as Passive Half Hourly to avoid CRC payments. The unintended consequence was that unmetered equipment controlled by CMS equipment designed to reduce energy usage was subject to CRC payments. Similarly calculation of unmetered consumption based on PECU Array data, which accurately reflects the installed PECUs, has been prevented. Both these consequences have resulted in additional energy consumption through passive calculation, but reduced customer costs by avoiding CRC payments. This all changed some years ago.

The Government announced in Dec 2012 that they will change the CRC scheme in April 2014 to require all unmetered energy to be subject to the CRC, irrespective of how it is traded. This removed the unintended anomaly. The government have since reviewed all the environmental taxes and it announced in March 2016 that the CRC will end in March 2019 when it will become combined with other taxes.

Turning equipment off is the simplest method of saving energy. Dimming or part night switching are more accepted methods of reducing energy use whilst still providing lighting at the required times. Although the financial savings will only be reflected in customer’s energy bills after the customer has updated their inventory to remove the equipment no longer in use.