The CRC Energy Efficiency Scheme (often referred to as simply ‘the CRC’) started in 2010, is a mandatory scheme in the UK, aimed at improving energy efficiency and cutting emissions in large public and private sector organisations.

The CRC affects large public and private sector organisations across the UK. Participants include supermarkets, water companies, banks, local authorities and all central government departments.

The CRC Scheme runs in phases: Phase 1 of the scheme ran from 1 April 2010 to 31 March 2014 and Phase 2 runs from 1 April 2014 to 31 March 2019. 2014 therefore marked the transition from Phase 1 to Phase 2. We are currently in Phase 2.

Organisations qualified for Phase 2 if between 1 April 2012 and 31 March 2013  they had:

  • at least one settled half hourly electricity meter
  • consumed at least 6000 megawatt hours (MWh) or more of qualifying electricity supplied on the settled half hourly market


A record on gas, purchased electricity and generation, consumption needs to be maintained in order to comply with CRC regulations. In addition an evidence pack must be provided. This is the collation of data which participants must keep as a record to:

  • Substantiate the information provided at registration and in their Annual Reports.  
  • Detail information about their organisation’s structure and about any significant events or changes that would affect their emissions or performance in the scheme.   

CRC phase 2 commenced on the 1st April 2014.  

CRC Phase 2 Changes:

  • The number of fuels covered has been reduced from 29 to 2.  
  • There will be no distinction between core and non-core supplies.  
  • The scheme will only cover emissions generated from the consumption of electricity and gas.  
  • Gas will only need to be reported and allowances purchased when this fuel is used ‘for heating purposes’. 
  • For gas used for heating, an organisation-wide 2% de minimis threshold will apply. From 2012-2013 if a participant’s gas consumption is below 2% of its electricity consumption then they won’t have to report on gas for the last two years of Phase 1 or purchase allowances. 
  • All gas meters consuming less than 73,200 kWh annually are excluded.  
  • Emission factors for CRC Phase 1 were set in 2008 and remained the same for the whole phase. From phase 2 onwards DEFRA emission factors will be used and will be updated annually. 
  • Electricity Generating Credits are no longer in use in Phase 2. Onsite generated electricity must be recorded in the annual report. 
  • Passive Pseudo Meters and Dynamic Meters street lighting must now be recorded in your annual report.