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Amendments to the CRC Energy Efficiency Scheme (Allocation of Allowances for Payment) Regulations 2013

The CRC Energy Efficiency Scheme Order 2010 established a trading scheme for greenhouse gas emissions, whether direct or indirect, in the UK. It applies to emissions from supplies of gas and electricity by large organisations in the public and private sectors and is designed to encourage organisations to invest in energy efficiency.  The Allocation of Allowances for Payment regulations 2012 applied through the first phase (April 2010 to March 2014) and provided for the allocation of CRC Allowances in return for payment. The second phase operates from April 2014 to March 2019.

The amendments concern allowances purchased for special allocations, forecast and compliance application periods, setting the price and providing for the final forecast sale for 2018 and final compliance sale in 2019.

Each year the government holds sales of allowances, which participants in the scheme have to surrender at the end of each year in an amount equal to their total CO2 emissions. This is based on their reported energy usage.

The 2013 regulations set the timing of allocation requests, govern the payment and issue of allowances, set the price of allowances, set the consequences of late and non-payment and provides for the Environment Agency to charge fees for the allocation of allowances.

The CRC Scheme is due to be scrapped after the 2018-2019 compliance year.


Guidance can be found on the BEIS and EA Websites.

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