CRC Simplification and Phase 2 Changes


A summary of the main CRC Simplification and Phase 2 changes are listed below:


  1. Removal of the 90% applicable percentage rule and introduction of reporting on 100% of relevant electricity and gas supplies. 
  2. Elimination of the footprint reports and the performance league tables for Phase 2 and future phases. 
  3. Gas only needs to be reported and allowances purchased when this fuel is used ‘for heating purposes’. 
  4. For gas used for heating, an organisation-wide 2% de minimis threshold applies. Where your total gas supply used for heating purposes is less than 2% of your total CRC electricity use in the first annual reporting year of a phase you can exclude your gas supplies from your annual reporting. You will have to make this decision before you submit your first annual report of the Phase and apply it for the rest of the phase irrespective of any changes in your gas or electricity supplies. 
  5. There is no distinction between core and non-core supplies. 
  6. All gas meters consuming less than 73,200 kWh annually are excluded. 
  7. All gas and electricity supplies to sites with EU ETS installations are excluded from CRC. 
  8. All gas and electricity to facilities covered by Certified Climate Change Agreements (CCA’s) are excluded from CRC. 
  9. Supplies used in metallurgical or mineralogical (Met Min) facilities which are exempted fromthe Climate Change Levy (CCL) are excluded from CRC. 
  10. Any subsidiary undertaking can disaggregate for separate participation. Disaggregation can be requested at any point during the first year of the phase, or during a compliance year. 
  11. Evidence packs which support each annual report should be kept for at least six years after the end of the scheme year to which it relates. 
  12. Rules of the CRC scheme have been amended to ensure that when they are applied to Trusts, the scheme will allocate responsibility for CRC to an entity with a genuine commercial interest in the property and its use, and with access to the information and resources necessary for effective and efficient compliance with the scheme.

  13. Replacement of Significant Group Undertaking (SGU) with Participant Equivalent.
  14. Electricity Generating Credits are no longer in use in Phase 2.  
  15. All unmetered supplies must be reported this includes Passive Pseudo Meters and Dynamic Meters street lighting. These supplies must now be recorded in your annual report for Phase 2, they are no longer excluded. 
  16. In CRC Phase 1, the allowance rates were constant for the whole Phase. From April 2014 (Phase 2), participants are able to choose whether to purchase allowances in a forecast sale or in a buy to comply sale for the compliance year they were issued and for any subsequent year in the same phase. 
  17. Emission factors for CRC Phase 1 were set in 2008 and remained the same for the whole phase. From phase 2 onwards (April 2014) government’s standard greenhouse gas (GHG) emission factors from DEFRA will be used and will be updated annually.  
  18. For phase 2 reporting, there are now two emission factors for electricity depending on whether the electricity is generated on site or grid supplied. In CRC, if the electricity supply is imported this is included in your CRC supplies and a grid average emission factor is applied. If the electricity supply is on-site generated an none of the conditions in 19 below apply, this is included in your CRC supplies and an onsite generation emission factor is applied.  
  19. Onsite generated electricity must be recorded in the annual report unless the following rules apply. Any on-site electricity from renewable sources which is:  
  • self-supplied  
  • generated using a source of energy or technology specified in section 41(5) of the Energy Act 2008 and  
  • which was commissioned on or after 1st January 2008 and where the generation is eligible for ROCs or FITs and has not at any time received either ROCs or FITs, or any other public financial incentive the electricity from this generation. 


       You must report in the total quantity of electricity self-supplied in the renewables section. Please note that although you are reporting this use as part of the renewables generation section, electricity covered by this definition is excluded from the calculation of CRC        jkjkemissions and is not subject to a requirement to purchase and surrender allowances.