Carbon Reduction Commitment applies to more plants than thought 01 April 2010

With the mandatory Carbon Reduction Commitment energy efficiency scheme now live, plant managers that have so far taken no action are being urged to do so urgently.

The warning comes from power giant npower, which makes the point that, while many believe CRC is only aimed at very large sites, the truth can be quite different.

Dave Lewis, npower's head of business energy services, says that CRC applies to two primary industrial and commercial site sizes.

"The very large energy-intensive undertakings, such as combustion plants, already understand what's involved, and are probably involved in climate change agreements and sector agreements," he explains, pointing to the accepted 6,000MW hours per year cut-off.

"But CRC also applies to lower intensity or multi-site plants, retail organisations and second tier manufacturers, such as pharmaceuticals steel producers, aluminium plants. This is the next tier down and plant managers here must do something," he says.

Organisations that fall into this category are those with a half-hour electricity meter – so with a site consuming more than 100kW. That's up to 20,000 organisations that need to register if they are affected by CRC.

"If sites have a half-hour meter and in 2008 consumed more than 6,000MW hours, then they are in the top 5,000 consumers. But there are around 15,000 below that, which must still register and make an information disclosure."
npower has a team of engineers and consultants covering CRC, he says, and wants to make the plant sector aware, before organisations find themselves being fined.

"Some larger retailers and some manufacturers will have to make very significant cash flow movements to manage [their permits].

"There's also the league table – and they will have no visibility of that. No matter what they do [to reduce energy consumption], it's all relative to other companies in their sector. They might do everything they can think of, but still come bottom.

"This is very much a gamble, which is why so strategic. Companies need tot understand the risks and rewards."

Brian Tinham

Related Companies
npower Direct Ltd

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