Npower reveals nearly half of businesses want the Carbon Reduction Commitment scrapped

Mon, 04 Apr 2011 10:53:18 GMT

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 place.

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 scheme."

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 in place."

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.

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About npower:
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.

npower assists companies with the CRC

Tue, 30 Mar 2010 11:04:44 GMT

npower has launched a new service to help organisations manage compliance with the Carbon Reduction Commitment Energy Efficiency Scheme (CRC), and benefit from the incentives it offers.

CRC Assist offers a full service provision to organisations affected by the carbon reduction commitment It provides support to help businesses understand the CRC; assists them with the development of an energy management strategy; and manages their participation in the scheme.

Dave Lewis, head of business energy services at npower, said: "We believe it's crucial that organisations understand the CRC and the management strategies they should implement to succeed within it. The scheme has been developed to offer significant incentives for the most successful participants and we have developed CRC Assist to ensure organisations are best placed to benefit from these."

CRC Assist offers support for businesses across the full scope of the CRC legislation and provides an understanding of the CRC. It's vital that all of the expected 5,000 full participant organisations, and the additional 15,000 participants who will need to register, understand the scheme and what is required of them. CRC Assist promises to cut through the complexities and help businesses understand their involvement in the scheme.

As part of CRC Assist, npower will help participants develop energy management strategies. In the longer term, it will also assist them with managing their performance in the CRC's league table, which will detail the best and worst performers in terms of emissions reduction. Through effective energy management, organisations will be able to achieve a higher position on the league table.

CRC Assist also offers businesses advice on carbon allowance purchasing, helping to make the 'cap and trade' element of the scheme easy. In addition, npower will also support organisations with their records and submissions within the scheme.

The CRC Assist proposal from npower will be specific to the size, scope and strategic objectives of each organisation it works with and is available to all organisations affected by the CRC - whether current, former or prospective customers of npower.

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Notes to editors:

npower is dedicated to helping UK businesses use energy more efficiently and therefore spend less money on their bills. npower aims to have a positive impact on the communities it serves and reduce customers' carbon footprint whilst always improving its service to customers.

For major energy users, npower offers multi-utility management consultancy to enable organisations to improve efficiencies right across the procurement/consumption chain.

npower customers include BT, Wembley Stadium plc, AstraZeneca and Sainsbury's.

npower urges businesses to make CRC a board level priority

Wed, 17 Mar 2010 14:59:03 GMT

npower has launched a plea for businesses to make the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) a board level concern and develop a strategy to manage participation to avoid financial loss and reputational damage.

This is the message of a new film - Understanding the CRC from energy firm npower, designed to help businesses prepare for the scheme and avoid potential pitfalls. npower's film provides guidance on qualification for the CRC, the importance of managing energy and carbon emissions to succeed under the scheme, and the reputational implications of the CRC league table that will name and shame those participants failing to reduce emissions.

It also points out the potential financial benefits of the scheme. DECC calculates that the CRC will stimulate £1bn of cost savings for participants through better energy efficiency.

A further message coming through loud and clear from the film is the importance of having a board member responsible for the CRC. Annual 'evidence packs' detailing participants' energy consumption must have board level sign off. The CRC will also require enterprise-wide investment and behaviour change to improve energy efficiency, which typically can only be sanctioned at the highest level.

Dave Lewis, head of business energy services at npower said: "A lot of businesses are turning to us for advice on the CRC and it's clear that many are still unclear on the obligations it places on them, and the opportunities and challenges it presents. Our film answers these questions and will hopefully go some way in addressing the concerns that some organisations have. Those affected by the scheme only have until the end of September to register, so it's important they understand what they need to do and how they can make the CRC benefit their business. This must be driven from the very top if businesses are to realise all the advantages the CRC offers."

npower helps companies monitor and manage energy consumption to bring commercial and environmental benefits. To help achieve this, npower has developed a monitoring and targeting (M&T) tool - encompass. A web-based system, encompass gives businesses accurate and timely information on their energy consumption, providing them with the data they need to implement cost and CO2 reduction policies. The system automatically collects data from half-hourly and smart meters, providing a detailed report on a business' energy consumption behaviour, and the related cost and environmental impacts of this. With this data, benchmarks can be set and consumption tracked, alongside mapping of carbon use and cost.

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npower is dedicated to helping UK businesses use energy more efficiently and therefore spend less money on their bills. npower aims to have a positive impact on the communities it serve and reduce our customers' carbon footprint whilst always improving its service to customers.

npower specialises in risk management solutions, including market-leading flexible energy purchasing, energy efficiency, and broader energy management functions, tailored to every size of business.

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