Prepare now for the carbon reduction commitment
April 1st 2008

UK businesses must record and lower their energy use now in order to make significant costs savings in the future,warns energy management technology provider t-mac Technologies.Director Lisa Wilkinson explains how to prepare for the forthcoming Carbon Reduction Commitment

The Government's mandatory emissions trading scheme, the Carbon Reduction Commitment (CRC),which comes into force in 2010, has an immediate impact on business, as charges for the scheme will be based on their energy consumption in 2008.

At the start of 2010 all businesses consuming more than 6000MWh of half-hourly metered electricity will be included in the CRC scheme; resulting in a requirement to purchase carbon allowances for the amount used thorough the 2008 qualifying year.

Companies will need to showcase 90% of their total consumption and ensure that their 2010 onwards annual usage falls within the carbon allowances purchased. Annual usage in 2010 falls within the same quantity used in the qualifying year, 2008. Businesses will also be rated against all other companies within the CRC and they will receive bonuses, or will be penalised, in accordance with where they feature on the 'leader board'.

In the first three years of the CRC, carbon emissions savings made by businesses will result in a surplus of carbon allowance which they can carry over into the following year.

Lisa Wilkinson, director of energy management technology provider tmac Technologies, explains:"UK businesses are in the dark as to who's affected in the CRC legislation, many don't know how it will affect them or how they can manage yet another piece of legislation.

"If businesses hold off monitoring and recording their energy use they will pay for it in the future.The majority of organisations have already made plans to reduce their electricity and gas bills in the long term.However,many have not yet put the wheels in motion and know how the CRC will affect them.

If they don't pay serious attention to this now then they will pay for their 2008 inefficiency for years to come." The CRC aims to help large nonenergy intensive businesses to reduce their emissions and thereby save money through improved efficiency.

It is anticipated that it will affect more than 5000 businesses in the UK, including government departments, retailers, banks and local authorities.

Lisa Wilkinson continues:"The easiest and most cost-efficient way of collecting this data is via an Automatic Monitoring and Targeting device (aM&T), such as a t-mac, which enables businesses to accurately manage energy usage within their carbon allowance purchased, identify areas for improvement to reduce costs, reduce the carbon credit requirements for the following year, and move up the CRC league-table." aM&T devices, such as tmac – a GPRS enabled monitoring and control system which monitors and controls critical assets showcasing energy consumption via online, internet accessible software – work by actively controlling equipment, such as heating or lighting, as conditions change. It can also remotely turn equipment off if required.

Implementing a CRC measure for business, t-mac Technologies'online software will also showcase carbon emissions in accordance with carbon allowance purchased. This will enable an easy review of carbon used,carbon reduced and hence carbon allowance remaining and to be carried over into the following year (or sold).

These devices provide information on operational ratings for buildings as part of legislation, but also offer additional information on equipment conditions and a site's performance, enabling businesses to identify inefficiencies in equipment and activities instantly.

t-mac Technologies currently works with many of the UK's leading banks and local authorities in order to help them meet the CRC.

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