CRC scheme to save businesses £1bn

UK businesses will save a total of £1bn and more than four million tonnes of carbon dioxide each year by 2020 by reducing energy use.

The figures are part of a new scheme from the Department of Energy and Climate Change to save organisations money on fuel bills and to reduce carbon emissions.

The Carbon Reduction Commitment (CRC) Energy Efficiency Scheme is a new regulatory programme to improve energy efficiency in large public- and private-sector organisations.

Large energy users in business and the public sector will be required to take part in the scheme from 1st April 2010.

DECC claims that the mandatory scheme will help these energy users reduce emissions at least 34 per cent on 1990 levels by 2020 through improved energy efficiency.

Organisations that have annual half-hourly metered electricity use of at least 6,000MWh qualify for the scheme. Such electricity use typically costs £0.5m a year.

The Environment Agency will publish the qualification and registration guidance for potential CRC participants by November.