The introduction of the Carbon Reduction Commitment Energy Efficiency (CRC) scheme has driven businesses to invest more in energy-efficiency measures, according to the annual npower Business Energy Index (nBEI).
Almost three-quarters of the 300 companies polled report investment as a direct result of their participation in the CRC, with 62% having installed smart meters and one in five taking on additional staff to manage their inclusion in the scheme.
And while some businesses believe that the CRC is unnecessarily complex and unwieldy, and that it places an unnecessary financial burden on business, more than half (52%) want no more changes to the scheme.
In October 2010, the government announced that it was scrapping the recycling payments, effectively turning the CRC into a straight tax, just seven months after the scheme launched. Recently, climate change minister Greg Barker unveiled plans to further streamline the scheme, reducing the number of fuels covered, removing the auctioning of allowances, and abolishing the need for large organisations to participate in groups.
The nBEI suggests that the changes have led to confusion and disillusionment among businesses, with the vast majority of respondents (94%) demanding that the recycling element is reinstated.
Almost one-third (32%) say that the removal of recycled payments from the scheme has had a negative impact on plans to invest in energy-saving measures.
“The issues businesses have faced since the implementation of the CRC and through its subsequent changes have led to confusion. And, while it is encouraging to see businesses investing in energy-efficiency measures, it is clear that the removal of recycled payments has meant that perhaps businesses have not implemented as much as planned,” says Dave Lewis, head of business energy services at npower.
Separate research by British Gas Business reveals that some sectors of the economy are planning to spend significant amounts on energy-efficiency measures in 2011, with others lagging behind. Its survey of 900 organisations found that 32% of industrial businesses and 30% of the public sector will invest heavily in such measures this year, but that 26% of retailers and 22% of business services do not plan on spending anything on energy efficiency in 2011.
The top five measures being implemented are: monitoring use; installing energy-efficiency devices/technology; electrical compliance/safety checks; portable-appliance testing; and installing new systems and equipment, such as new boilers.
Meanwhile, the government has announced that Whitehall departments exceeded the 10% reduction in carbon emissions demanded by David Cameron when taking office last year.
Over the past 12 months, carbon emissions from central government buildings have fallen 13.8%, reducing energy bills by £13 million. The biggest reduction was at the Department for Education, which slashed its CO2 emissions by 21.5%. DECC reduced its discharges by 21.3%, while Defra’s were down by 11.6%.
The government has now set departments a new target: to reduce emissions by 25% by 2015.
