Coverage & Reporting in CRC Ian Trim Senior Policy Advisor 26 March 2009

1. Coverage & Reporting in CRC Ian Trim Senior Policy Advisor 26 March 2009

2. Agenda • Qualification • Emission Coverage • Reporting Obligations • Penalties

3. Qualification • Organisations grouped together under their highest parent Overseas company must nominate the UK CRC agent • Responsibility for emissions of the entire organisation or group Particular circumstances may arise where entities otherwise legally separated will be grouped together • To identify which emissions Counterparty to the energy supply contract

4. Qualification • Organisation has at least one Half-Hourly (HH) Meter settled on the HH Market Assessment across the entire organisation Need to monitor HH electricity consumption over the course of 2008 Legally required to communicate with the scheme Administrator

5. Qualification • Organisation HH electricity consumption exceeds 6,000 MWh over the course of 2008 • HH electricity use must include: • Mandatory HH meters • Voluntary HH meters • Remotely read AMR • Pseudo HH metering readings

6. Qualification

7. Excluded from Footprint report and CRC: Onward supply and storage Transport Electricity imported for generation purposes Emission Coverage - Exclusions • Included in Footprint report, but not CRC • EU ETS • CCA • Emissions are not included in CRC, but will be considered for the purpose of identifying the ‘Applicable Percentage’ – the 90% rule

8. Emissions Coverage -Exemptions • ‘Transport’ Exemption • Exemption for any organisation whose HH electricity used for transport takes them below 1,000MWh • CCA Exemptions • Group member exemption • Residual Group Exemption

9. Emission Coverage – Core Sources • All half hourly meters • Meters profile classes 5 – 8 • Daily-read gas meters • Non-daily metered gas > 73,200 kWh/annum

10. Emission Coverage – Footprint • Identify their total energy use across the entire organisation • Including consumption covered by EU ETS and/or CCA • Excluding energy use from other excluded activities • Excluding energy use of emissions from subsidiaries exempt on CCA grounds • Footprint = Total Energy Use – Transport – Onward supply – CCA Exempt subsidiaries

11. Emission Coverage – CRC Emissions & 90% rule • 90% of Footprint must be regulated by either EU ETS, CCA or CRC (the ‘Applicable Percentage’) • Core Sources have to be included in CRC on mandatory basis • Must include non-core sources (‘Residual Sources’) to reach 90% coverage • Can include non-core sources (‘Residual Sources’) on a voluntary basis if above 90% • Residual Sources need to be recorded on the Residual Source List

12. Emission Coverage • CRC Emissions = Core Sources + Residual Sources • For that Phase need to: • Monitor emissions • Report emissions • Hold and cancel allowances – the ‘Performance Commitment’ • equal to CRC Emissions

13. Emission Coverage 1. MUST remove all energy use from excluded sources 2. MUST remove 100% of emissions from CCA exempt subsidiaries 3. CAN remove up to 10% of footprint emissions but not Core Sources, or covered by EU ETS or CCAs. Regulated Emissions must be at least 90% of relevant emissions 4. MUST remove all emissions covered by CCAs and EU ETS.

14. Reporting • Self Certification – no 3rd party verification • Evidence Packs – to record energy use and provide audit trail • Emissions Reporting via an online Registry • Two types of report: • Once per phase – Footprint Report • Annually – Annual Report

15. Reporting

16. Electricity Generation Electricity Credits Reporting – Electricity Credits • Conditions: • On-site Electricity Generation • Export Electricity to third parties • Not Nuclear, EU ETS or RO • Receive Electricity Credits: • Grid average conversion factor • Valid for the year when generation occurred • Report Net electricity consumption

17. Reporting – Data Collection • Electricity and Gas Bills • Receipts of purchase of fuels • Own Meter Readings • Annual Statement of Consumption • Requested in February • Issued in May • Govt issue guidelines on approximation techniques

18. Penalties • Failure to Register • Failure to disclose information • Failure to provide footprint report • Failure to provide annual report • Incorrect reporting • Failure to hold and cancel sufficient allowances - the ‘Performance Commitment’ • Failure to keep adequate records

19. Penalties