Overview of the current CRC scheme

Southworth, Jane; Manning, Catherine
March 2013
Journal of Building Survey, Appraisal & Valuation;Vol. 2 Issue 1, p73
Academic Journal
Following a significant period of uncertainty the UK Government has confirmed the changes that will be made to the CRC Energy Efficiency Scheme (CRC Scheme) in order to simplify it and reduce the administrative burdens it places on businesses. The CRC Scheme requires non-energy intensive organisations to measure and report on their energy consumption and purchase allowances for the amount of CO2 emissions associated with that consumption. The majority of the changes proposed will come into force from April 2014, however certain changes will come into effect from 1st June, 2013. Key changes for the real estate sector include the surprise abolition of the Performance League Table, the disapplication of the Landlord and Tenant Rule in respect of ground lease arrangements, and new rules in relation to CRC responsibility in Trust situations. The simplification of the CRC Scheme is to be welcomed as many businesses had struggled with its technical complexities, however, fundamental criticisms that the scheme is merely a tax remain. The Government will review the effectiveness of the simplified CRC Scheme in 2016.


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