In response to the Carbon Reduction Commitment Energy Efficiency Scheme simplification proposals published by the Department for Energy and Climate Change (DECC), Wayne Mitchell, Industrial and Commercial Markets director at npower comments.
He said, “npower’s Industrial and Commercial Markets team welcomes the CRC simplification plans announced by DECC. More importantly though, the decisions outlined will reassure many of the businesses we have spoken to about the scheme before and since its implementation, many of whom feel strongly about it.
“In fact, the CRC has had a fairly gloomy reaction from industry since it came in in 2010, with 65% of businesses preferring it to be scrapped in npower’s 2011 ‘Red Tape Challenge: Have Your Say’ report.
“Since then, we’ve continued to speak with businesses on the CRC, to allow them to dissect and comment on the key issues and make sure their voices were heard on the scheme. Through roundtable events, surveys and online webinars, businesses told us how they were generally still disillusioned with the CRC.
“This is largely because the scheme’s original intention of rewarding businesses for energy efficiency became marred by the cost of its administration. However, during the consultation process, businesses welcomed many of the proposals to help simplify the scheme laid out in the consultation, which will hopefully rebalance the scheme in line with its original sustainability goals.
“Most businesses will no doubt be pleased with the reduction in the number of fuels they have to report on, with 88% of business asked by npower agreeing with this proposal. There was also good support for the scrapping of the 90% rule and Climate Change Agreements exemption rule. The companies we spoke to had mixed views on the value of the league table, but with praise for it among business being scarce, I doubt it will be missed.
“One of the key CRC issues businesses feel aggrieved by is its administrative burden. I’m sure many energy managers around the UK will be hoping that the 55% reduction in costs cited by DECC will come to bear. In the meantime, we will continue to help ensure businesses’ voices are heard on the energy issues affecting them, and highlight consumer concerns on future energy plans. By doing so, we aim to give policy decision makers the information they need to take a practical view to driving carbon reduction.”