Major shake up of UK's Carbon Reduction Commitment Energy Efficiency Scheme (CRCEES) | 20th Oct 2010

Today the UK Chancellor announced wide spread changes to the structure of CRCEES as part of the Government's Comprehensive Spending Review.  Whilst the 20,000 plus businesses that have to register for the scheme will be able to score out their CRCEES budget allowance for next year, costs are likely to be ten times higher from 2012 onwards.

Previously allowances were purchased at £12 but participants could expect a minimum of 90% back through the recycling mechanism built into the scheme.  Despite the stated aim of reducing the burden on business, the withdrawal of this mechanism will result in significant cost increases for business. We estimate that the changes to CRCEES roughly equates to a 10% flat tax on energy for CRCEES participants.

David Symons, Director at WSP Environment & Energy, comments:

"CRCEES is becoming a political football.  This is just the latest proposed revision, of which more are expected.  Business wants simplicity, but it also wants continuity so that it can plan.  Constant changes in the structure of CRCEES discredit the regulation and mean businesses need to urgently review their CRCEES position in light of the proposed changes."

For further information on CRCEES, please visit http://www.wspenvironmental.com/crcees

To discuss how this could affect your business, please contact David Symons or Chris Stubbs.