CRC annual report publication: 2016 to 2017
Updated 1 June 2020
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This publication is available at https://www.gov.uk/government/publications/crc-annual-report-publications-phases-1-and-2/crc-annual-report-publication-2016-to-2017
1. Executive summary
The Environment Agency administers the CRC Energy Efficiency Scheme (CRC) for the UK on behalf of the Department of Business Energy and Industrial Strategy (BEIS) and the devolved administrations. This is our annual report publication (ARP) for the third compliance year of Phase 2 and the reporting period April 2016 to March 2017. This report covers energy and emissions data submitted by participants as well as the level of compliance and satisfaction of our customers.
Phase 2 runs from 2014 to 2019 and consists of 5 separate compliance years. This phase has introduced a number of changes which mean that much of the information in this report is not directly comparable to that from previous compliance years as reported in Phase 1.
The key results for Phase 2 show:
- 1,915 participants registered for 2016 to 2017 - this is a small increase in the number of participants when compared to 1,869 participants in 2015 to 2016
- total energy use reported for 2016 to 2017 was 105,448,670 megawatt hours (MWh) - this follows on from 110,611,902 MWh in 2014 to 2015 and 107,053,694 MWh 2015 to 2016
- total reported emissions for 2016 to 2017 was 37,113,865 tonnes of carbon dioxide (tCO2) - this follows on from 45,681,222 tCO2 reported in 2014 to 2015 and 41,265,628 tCO2 reported in 2015 to 2016
- 98% of participants complied with the annual reporting deadline
2. Introduction
2.1 CRC Energy Efficiency Scheme
The CRC Energy Efficiency Scheme (CRC) is a mandatory scheme which aims to improve energy efficiency and cut emissions for large public and private sector energy users across the UK. For 2016 to 2017, 1,915 participants were registered in the scheme including:
- supermarkets
- water companies
- banks
- local authorities
- all central government departments
These organisations are responsible for around 10% of the UK’s greenhouse gas emissions. The scheme features a range of drivers, which aim to encourage organisations to develop energy management strategies that promote a better understanding of energy usage, and lead to improved energy efficiency.
The scheme is partially devolved across the UK. The Department for Business Energy and Industrial Strategy (BEIS) has developed the CRC policy in partnership with the Scottish Government, Welsh Government and Department of Agriculture, Environment and Rural Affairs (DAERA) Northern Ireland.
The Environment Agency administers important aspects of the scheme for the UK. We are also the regulator for participants whose registered office or principal place of business is in England. Participants in Scotland, Northern Ireland and Wales are regulated by the Scottish Environment Protection Agency (SEPA), the Chief Inspector in the Northern Ireland Environment Agency (NIEA) and Natural Resources Wales (NRW).
The scheme is split into phases:
- Phase 1: 1 April 2010 to 31 March 2014
- Phase 2: 1 April 2014 to 31 March 2019
CRC participants have to monitor their energy consumption every year and report this information into the CRC Registry, an online IT system, which calculates their carbon dioxide (CO2) emissions. Participants must buy and surrender ‘allowances’ to cover these emissions - one allowance for each tonne of CO2.
See more information on the CRC Energy Efficiency Scheme.
2.2 Annual report publication
The Environment Agency has produced this annual report publication (ARP) under Article 58 of the legislation establishing the scheme - the CRC Order 2013. We have developed the ARP with government departments and other regulators responsible for the design and implementation of the scheme.
The report contains:
- a spreadsheet with information for each participant
- an explanation of the spreadsheet and accompanying information on the CRC scheme
This ARP represents the fourth release of information drawn from the annual reports of CRC participants. It covers the 2016 to 2017 compliance year for Phase 2. See the previous Phase 2 and Phase 1 reports.
3. Content of the ARP
3.1 Baseline information for the ARP
This ARP is based on the information entered onto the CRC Registry by scheme participants. Their annual reports have to be submitted by the end of July for each compliance year. Participants are responsible for the accuracy of reports they have submitted, but we help them check the quality of their data. Any participant who finds an error in their report can resubmit the information into the CRC Registry at any time.
The information provided in this ARP is based on 2016 to 2017 reports entered into the CRC Registry by participants up to 31 October 2017. If a participant has altered their data after this date it will not be reflected in this publication.
3.2 ARP spreadsheet
The spreadsheet contains the following information based on the participants’ reports in the registry:
- registration number
- organisation name
- trading name (where submitted)
- regulator
- disaggregation information - where disaggregation has occurred, this will show the CRC registration number of the disaggregated participant
- number of designated changes - this figure shows the total number of designated changes that have occurred to a participant since registration for this phase
- organisation type
- sector code and description - for companies the codes and descriptions are based on the Standard Industry Classification (SIC) codes - for public sector organisations and participants who classified themselves as an Organisation of Individuals (OOI) at registration the public body and OOI type is specified
- 2016 to 2017 CRC emissions in tCO2
- 2016 to 2017 Renewable Obligation Certificates (ROCs) emissions (tCO2)
- 2016 to 2017 Feed In Tariffs (FITs) emissions (tCO2)
- 2016 to 2017 Self Supply ROCs and FITs emissions (tCO2)
- 2016 to 2017 Self Supply Renewables (tCO2)
The data in the spreadsheet is divided into 4 pages:
- Page 1 shows each participant and their CRC emissions
- Page 2 gives more information for each participant including the sector and renewable emissions
- Page 3 shows participant responses to corporate responsibility questions
- Page 4 explains the data fields on pages 1 to 3
See data covering each participant’s total CRC emissions (tCO2) for each compliance year in Phase 1.
3.3 Changes to the scheme and comparability of data
The CRC Energy Efficiency Scheme Order 2013 introduced a number of simplifications and modifications to the scheme, including the participant qualification criteria and reporting requirements. Some of these changes applied immediately, starting in the last 2 compliance years of Phase 1; for example, reducing the number of energy supplies to be reported to gas for heating and electricity consumption. Others only took effect from Phase 2; for example, the exclusion of energy supplies used for metallurgical and mineralogical processes. All changes are detailed in the CRC Phase 2 guidance document.
These changes mean that much of the information in this Phase 2 report is not directly comparable to that presented in the reports for Phase 1.
4. Participation, emissions and allowances
4.1 Number of participants
Organisations that qualified for Phase 2 of the scheme had to register by 31 January 2014. Phase 2 changes to the qualification criteria, as well as organisational changes, have altered the size of the participant group. There were 2,039 reporting participants in the last year of Phase 1. The total number of participants registered at the beginning of Phase 2 was 1,858. This increased to 1,869 in 2015 to 2016 and 1,915 in 2016 to 2017.
The participants remain mostly large, non-energy intensive public and private sector organisations and government departments. Of the 1,915 registered participants, 1,373 (71.7%) are private and 509 (26.6%) are public organisations. The remaining 33 (1.7%) are made up of charities and other organisations.
4.2 Energy and emissions reporting
For Phase 2, participants only need to report gas used for heating and electricity consumption. There is also a distinction between electricity imported from off-site and that generated on-site. On-site generated electricity has a lower emission factor to remove the influence of transmission loss. The figures in Table 1a, 1b and 1c show the total sums of the reported emissions (which are reported individually in the spreadsheet) for 2014 to 2015, 2015 to 2016 and 2016 to 2017.
Table 1a: 2014 to 2015 reported energy use and equivalent CO2 emissions
| Fuel/supply type | Total energy reported | Total CO2 emissions (tCO2) |
|---|---|---|
| Imported electricity (MWh) | 70,409,213 | 37,663,662 |
| On-site electricity (MWh) | 1,804,476 | 886,592 |
| Gas (MWh) | 38,398,213 | 7,130,968 |
| Total | 110,611,902 | 45,681,222 |
Table 1b: 2015 to 2016 reported energy use and equivalent CO2 emissions
| Fuel/supply type | Total energy reported | Total CO2 emissions (tCO2) |
|---|---|---|
| Imported electricity (MWh) | 67,357,288 | 33,431,544 |
| On-site electricity (MWh) | 1,925,064 | 882,641 |
| Gas (MWh) | 37,771,342 | 6,951,443 |
| Total | 107,053,694 | 41,265,628 |
Table 1c: 2016 to 2017 reported energy use and equivalent CO2 emissions
| Fuel/supply type | Total energy reported | Total CO2 emissions (tCO2) |
|---|---|---|
| Imported electricity (MWh) | 65,784,597 | 29,380,717 |
| On-site electricity (MWh) | 1,994,992 | 817,089 |
| Gas (MWh) | 37,659,938 | 6,916,059 |
| Total | 105,448,689 | 37,113,865 |
5. Forecast allowance sales
In Phase 2, the process for buying allowances changed. In Phase 1, there was a single government ‘buy to comply’ sale of allowances at the end of each reporting period. For Phase 2 there is an additional fixed price ‘forecast’ sale of allowances held in April at the start of each compliance year.
A forecast sale allows participants to buy allowances against predicted emissions for the current or future compliance years within the phase. Forecast allowances cost less than buy to comply allowances, as shown in Table 2. This acts as an incentive to encourage better management and budgetary control of anticipated energy usage. The allowance prices are set annually by government.
Tables 3a to 3c show the allowances bought in the forecast sale for compliance years 2014 to 2015, 2015 to 2016, and 2016 to 2017.
Table 4 shows information on the forecast sale completed in April 2017 for the fourth compliance year, 2017 to 2018.
5.1 Table 2: forecast and buy to comply sale prices per tonne of CO2 by compliance year
| CRC compliance year | Forecast sale price | Buy to comply sale price |
|---|---|---|
| 2014 to 2015 | £15.60 | £16.40 |
| 2015 to 2016 | £15.60* | £16.90 |
| 2016 to 2017 | £16.10 | £17.20 |
*This forecast sale price has been corrected from the previously published price of £16.10. See more information on this correction.
5.2 Table 3a: 2014 to 2015 compliance year forecast sale showing the number of CRC participants involved and total value of allowances bought
| Sector type | Number of participants | Allowances bought (£15.60 per allowance) |
|---|---|---|
| Private sector | 212 | £124,566,530 |
| Public sector | 255 | £117,175,984 |
| Total | 467 | £241,742,514 |
5.3 Table 3b: 2015 to 2016 compliance year forecast sale showing the number of CRC participants involved and total value of allowances bought
| Sector type | Number of participants | Allowances bought (£15.60 per allowance) |
|---|---|---|
| Private sector | 253 | £271,410,968.40 |
| Public sector | 271 | £204,088,918.80 |
| Total | 524 | £475,499,887.20 |
5.4 Table 3c: 2016 to 2017 compliance year forecast sale showing the number of CRC participants involved and total value of allowances bought
| Sector type | Number of participants | Allowances bought (£16.10 per allowance) |
|---|---|---|
| Private sector | 202 | £150,707,125.10 |
| Public sector | 230 | £117,487,093.50 |
| Total | 432 | £268,194,218.60 |
5.5 Table 4: 2017 to 2018 compliance year forecast sale showing the number of CRC participants involved and total value of allowances bought
| Sector type | Number of participants | Allowances bought (£16.60 per allowance) |
|---|---|---|
| Private sector | 175 | £98,875,410.00 |
| Public sector | 199 | £83,004,714.40 |
| Total | 374 | £181,880,124.40 |
6. Buy to comply allowance sales
The buy to comply sale allows participants to buy additional allowances from the government, if needed, to meet their surrender obligations following annual reporting.
Tables 5a, 5b and 5c show the numbers of participants involved in the 2014 to 2015, 2015 to 2016, and 2016 to 2017 buy to comply sales and the value of allowances bought.
6.1 Table 5a: total number of CRC participants involved and financial value of allowances bought in the 2014 to 2015 buy to comply sale
| Sector type | Number of participants | Allowances bought (£16.40 per allowance) |
|---|---|---|
| Private sector | 1,170 | £445,573,338 |
| Public sector | 300 | £76,708,950 |
| Total | 1,470 | £522,282,288 |
6.2 Table 5b: total number of CRC participants involved and financial value of allowances bought in the 2015 to 2016 buy to comply sale
| Sector type | Number of participants | Allowances bought (£16.90 per allowance) |
|---|---|---|
| Private sector | 1,025 | £361,974,390.70 |
| Public sector | 238 | £65,483,072.20 |
| Total | 1,263 | £427,457,462.90 |
6.3 Table 5c: total number of CRC participants involved and financial value of allowances bought in the 2016 to 2017 buy to comply sale
| Sector type | Number of participants | Allowances bought (£16.90 per allowance) |
|---|---|---|
| Private sector | 1,029 | £329,519,784.40 |
| Public sector | 261 | £53,830,496.00 |
| Total | 1,290 | £383,350,280.40 |
7. Compliance and enforcement
7.1 Annual report submissions
The dates by which participants have to submit annual reports are specified in the CRC Order 2010 as amended. Compliance against these deadlines is shown in Table 6. These figures take into account changes in the number of participants reporting for each compliance year. They exclude failures to submit reports in cases of insolvency. The Phase 1 figure is shown as an average over the 4 compliance years.
Table 6: percentage of participants compliant with reporting deadlines
| Phase 1 2010 to 2014 average % | Phase 2 2014 to 2015 actual % | Phase 2 2015 to 2016 actual % | Phase 2 2016 to 2017 actual % | |
|---|---|---|---|---|
| Percentage of participants compliant with annual report submission deadline | 97% | 98% | 98% | 98% |
7.2 Civil penalties
Under the CRC Order, the regulator has powers to issue financial civil penalties in the event of a non-compliance. The order also provides that the penalty of ‘publication’ may be imposed, in order to bring attention to a non-compliance. Where this is done the civil penalties imposed are published on GOV.UK.
Penalties are normally published for 12 months after the period for making an appeal has passed. As of 1 December 2017, 25 civil penalties with a total value of £680,875 were published:
- 7 related to reporting failures in Phase 1 and one in Phase 2
- 7 due to incorrect reports in Phase 1
- 5 related to allowance surrender failures in Phase 1 and 4 in Phase 2
- one registration failure in Phase 2
8. Participant comments and feedback
8.1 Customer satisfaction
In Phase 2 we increased the range of options available to participants for giving us feedback on our performance. These include our programme of compliance audits, the continuous customer survey and through our help desk.
To date, 74% of customers who have responded to this survey rated our overall service as satisfactory or better. Of these, 57% rated our overall service as good or excellent. We value all feedback and use it to help improve our service.
9. Future developments
9.1 The business energy efficiency taxation review
In the 2016 Spring Budget following a review of business energy efficiency taxation, government announced that it has decided to close the CRC energy efficiency scheme following the 2018 to 2019 compliance year, with no buying of allowances required to cover emissions for energy supplied from April 2019. Government announced that organisations will report under the CRC for the last time by the end of July 2019, with a surrender of allowances for emissions from energy supplied in the 2018 to 2019 compliance year by the end of October 2019. Government stated that it will work with the devolved administrations on scheme closure arrangements. For further information email report@BEIS.gov.uk.