npower Reveals Nearly Half Of Businesses Want The Carbon Reduction Commitment Scrapped
Released on: April 04, 2011, 2:12 pm
Npower has conducted new research revealing that, on the first
anniversary of its implementation, UK businesses want the Carbon
Reduction Commitment Energy Efficiency Scheme (CRC) scrapped.
The research reveals that companies not only want to see an end to the scheme, but
over a quarter (29%) also said they do not think the Carbon Reduction Commitment will help the UK meet its carbon reduction targets - one of its key aims.
The government proposed several changes to the scheme as part of its Comprehensive
Spending Review and as such, financial incentives which were originally included in
the scheme were removed. Nearly half of businesses (43%) said they want financial
incentives reintroduced and 40% of organisations said that now the CRC is
effectively a tax, there is no incentive for businesses to reduce their carbon
emissions - another important reason why the scheme was introduced in the first
Dave Lewis, head of business energy services at
npower, said: "The results of our latest research reflect much of the feedback we
receive on a daily basis from our customers. It is concerning that the changes to
the CRC have resulted in businesses putting less priority on reducing emissions,
which was one of its key aims. We feel it is important that organisations focus on
the best practice behaviour the CRC sets out to encourage, as energy efficiency and
effective energy management make sound commercial sense, with or without the
Over half of businesses (54%) feel the CRC places unnecessary financial burden on
businesses and 41% feel the CRC should be postponed until the UK economy’s financial
recovery is more secure.
Dave Lewis continues: "It is also worth noting that nearly half of businesses (48%)
said they felt the scheme’s first league table, due to be published in October 2011,
will not carry any real meaning. When the scheme was first launched, this was an
important element of its financial and reputational incentives, so these results
seem to suggest that organisations are viewing the scheme differently, and many of
our customers have told us they see it purely as another tax.
"The next milestone in the CRC calendar is submission of the first footprint
report, which details an organisation's carbon emissions from April 2010. This is
due by 29 July and our research reveals that not only are over one in ten businesses
concerned their company will miss the deadline but that 10% of them are not
confident the data their company will submit is correct. This is a real concern as
accurate data is the first point of any effective energy management strategy and only by
truly knowing how and where energy is being consumed can efficiency measures be put
npower conducted research among 70 professionals responsible for energy management
in their organisations in March 2011.
npower works with customers under its 'CRC Assist' service which supports
organisations in managing their obligations. The service is designed to help them
understand the scheme; assist them with the development of an energy management
strategy; and manage their participation in the scheme including preparation of
registration information, compilation of the year end 'footprint reports', plus
guidance on the purchasing of emissions allowances.
- ENDS -
npower is one of the top energy suppliers to the UK business market, serving over
238,000 small to medium sized enterprise sites and around 17,000 industrial and
commercial customers, with over 100,000 sites.
npower Industrial and Commercial Markets is an award-winning business energy
supplier. In 2010 it was named 'The
Consumer Supplier of the Year' award at The Energy Event and was also awarded
'Energy Supplier of the Year' at the inaugural Energy 'Buying & Supplying
Excellence' Awards. Both awards were voted for by business customers.
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