Energy and utilities consultancy, Utilitywise, has urged that government reforms to the CRC Energy Efficiency Scheme (CRC), (one of its flagship green policies), needs to reward energy efficiency and renewables as well as simplifying red tape.

The consultation document includes proposals to streamline and simplify the scheme to deliver its energy efficiency and carbon reduction objectives whilst making compliance easier and less costly for participants.

Utilitywise has warned that plans to simplify the scheme could result in green firms who have already invested in energy efficiency measures or implemented carbon offsetting effectively paying twice.

Dr Duncan Tytler, Utilitywise technical director, commented, “CRC was a good idea in its original format as it rewarded big energy users who implemented energy efficiency measures and taxed those who did nothing.

“Moving the system to be a flat tax doesn’t incentivise firms, so the modified CRC will need to reward energy efficiency with some form of credit in addition to the energy saved.”

Utilitywise is encouraging firms to add their voice to the consultation and asking the government to recognise the need for incentives to encourage firms generating their own energy or using offset products like Carbon Zero.

Darren Sutherland, Utilitywise energy manager, added, “It looks like the CRC is here to stay and given the various pledges to reduce the UK’s carbon footprint it will be impossible to scrap the scheme entirely.

“The likelihood is this that sooner or later this scheme will be extended to more companies, so even if you’re not affected now, you may well be in the future.

“The only way you can guarantee smaller bills in the future is to take action now to reduce your energy costs.”