CRC annual report publication: 2017 to 2018
Updated 1 June 2020
© Crown copyright 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-2017-to-2018
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 fourth compliance year of Phase 2 and the reporting period April 2017 to March 2018. This report covers energy and emissions data submitted by participants as well as the level of compliance and satisfaction of our customers.
Phase 2 covers energy and emissions from 2014 to 2019 and consists of 5 separate compliance years. This phase has introduced a number of changes which means that much of the information in this report is not directly comparable to data reported in Phase 1.
The main results for Phase 2 show:
- 1,840 participants registered for 2017 to 2018 – this is a small decrease in the number of participants when compared to 1,915 participants in 2016 to 2017
- total energy use reported for 2017 to 2018 was 103,806,596 megawatt hours (MWh) – reduced from 105,448,670 MWh in 2016 to 2017
- total reported emissions for 2017 to 2018 were 31,967,178 tonnes of carbon dioxide (tCO2) reduced from 37,113,865 tCO2 reported in 2016 to 2017
- 98% of participants complied with the annual reporting deadline
2. Introduction
2.1 CRC Energy Efficiency Scheme
The 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. The 1,840 participants registered in the scheme for 2017 to 2018 included:
- supermarkets
- water companies
- banks
- local authorities
- all central government departments
The scheme encourages organisations to develop energy management strategies that promote a better understanding of energy usage and improved energy efficiency.
The scheme is partially devolved across the UK. BEIS has developed the CRC policy in partnership with the Scottish Government, Welsh Government and Department of Agriculture, Environment and Rural Affairs, 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, the Chief Inspector in the Northern Ireland Environment Agency and Natural Resources Wales.
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 2017 to 2018 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 2017 to 2018 reports entered into the CRC Registry by participants, including corrections up to 31 October 2018. 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 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
- 2017 to 2018 CRC emissions in tCO2
- 2017 to 2018 Renewable Obligation Certificates (ROCs) emissions (tCO2)
- 2017 to 2018 Feed In Tariffs (FITs) emissions (tCO2)
- 2017 to 2018 Self Supply ROCs and FITs emissions (tCO2)
- 2017 to 2018 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
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 qualifying 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. For 2017 to 2018 the number of participants registered was 1,840.
The participants remain mostly large, non-energy intensive public and private sector organisations and government departments. Of the 1,840 registered participants, 1,329 (72.2%) are private and 478 (26%) are public organisations. The remaining 33 (1.8%) 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, 1c and 1d show the total sums of the reported emissions (which are reported individually in the spreadsheet) for 2014 to 2015, 2015 to 2016, 2016 to 2017 and 2017 to 2018.
Table 1a: 2014 to 2015 reported energy use and equivalent CO2 emissions
| Fuel or 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 or 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 or 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 |
Table 1d: 2017 to 2018 reported energy use and equivalent CO2 emissions
| Fuel or supply type | Total energy reported | Total CO2 emissions (tCO2) |
|---|---|---|
| Imported electricity (MWh) | 63,534,839 | 24,233,244 |
| On-site electricity (MWh) | 2,010,658 | 701,376 |
| Gas (MWh) | 38,261,099 | 7,032,558 |
| Total | 103,806,596 | 31,967,178 |
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 3d show the allowances bought in the forecast sale for compliance years 2014 to 2015, 2015 to 2016, 2016 to 2017 and 2017 to 2018.
Table 4 shows information on the forecast sale completed in April 2018 for the fifth and final compliance year, 2018 to 2019.
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 |
| 2017 to 2018 | £16.60 | £17.70 |
| 2018 to 2019 | £17.20 | £18.30 |
*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 |
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 |
5.3 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 |
5.4 Table 3d: 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 (£16.10 per allowance) |
|---|---|---|
| Private sector | 175 | £98,875,410.00 |
| Public sector | 199 | £83,004,714.40 |
| Total | 374 | £181,880,124.40 |
5.5 Table 4: 2018 to 2019 compliance year forecast sale showing the number of CRC participants involved and total value of allowances bought
| Sector type | Number of participants | Allowances bought (£17.20 per allowance) |
|---|---|---|
| Private sector | 192 | £64,755,127.60 |
| Public sector | 82 | £21,828,623.20 |
| Total | 274 | £86,583,750.80 |
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, 5c and 5d show the numbers of participants involved in the 2014 to 2015, 2015 to 2016, 2016 to 2017 and 2017 to 2018 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 |
6.4 Table 5d: total number of CRC participants involved and financial value of allowances bought in the 2017 to 2018 buy to comply sale
| Sector type | Number of participants | Allowances bought (£17.70 per allowance) |
|---|---|---|
| Private sector | 1,165 | £301,714,967.30 |
| Public sector | 288 | £57,711,615.90 |
| Total | 1,453 | £359,426,583.20 |
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.
Table 6: Phase 2 percentage of participants compliant with reporting deadlines
| 2014 to 2015 actual % | 2015 to 2016 actual % | 2016 to 2017 actual % | 2017 to 2018 actual % | |
|---|---|---|---|---|
| Percentage of participants compliant with annual report submission deadline | 98% | 98% | 98% | 98% |
7.2 Civil penalties
Under the CRC Order, the regulator has powers to issue financial civil penalties in the event of non-compliance. The order also provides that the penalty of ‘publication’ may be imposed. Penalties are normally published for 12 months after the period for making an appeal has passed. The current published details are on data.gov.uk.
As of 1 April 2019 we have issued 45 civil penalties since the start of the scheme with a value of £623,085. These can be broken down into the following categories:
- 27 related to reporting failures
- 2 due to incorrect reports
- 15 related to allowance surrender failures
- 1 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, 70% of customers who responded to this survey rated our overall service as satisfactory or better. Of these, over 50% 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 after a review of business energy efficiency taxation, government announced its decision 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.
The CRC Energy Efficiency Scheme (Revocation and Savings) Order 2018 came into effect on 1 October 2018. This confirmed the CRC energy efficiency scheme will close once the current compliance year, covering energy and emissions to the 31 March 2019 has ended. Participants will still have to submit annual reports, order and surrender allowances for the 2018 to 2019 compliance year and maintain their CRC records until 31 March 2025. Compliance audit and enforcement work will continue after the 2018 to 2019 compliance year.
10. Streamlined Energy and Carbon Reporting (SECR)
Government has introduced the SECR regulations. These regulations took effect on 1 April 2019. They are designed to make reporting simpler. Undertakings (including some CRC participants) will need to report annual energy consumption as part of their annual director’s report.
The Environment Agency does not have a role in the administration of this new reporting regime.