Counting the cost of the CRC Energy Efficiency Scheme
Businesses could gain net revenue equivalent to 13% of their energy costs with the right approach to the CRC Energy Efficiency Scheme. Conversely, they could suffer a cost penalty of 28%. These figures are based on an analysis by multidisciplinary consultancy hurleypalmerflatt of its clients over the past two years in the run up to the start of the scheme at the beginning of April 2010.
The analysis found that an organisation with an energy spend of £1 million a year would be likely to see a net cost to the business of £280 000 by 2017 if they introduce measures that comply only with the basic requirements of the scheme.
However, those taking action now to optimise CRC performance could receive net income of £130 000 and be £140 000 better off than taking a basic compliance approach.
The impact is even greater for large multi-national organisations, which could be up to £80 million better off over seven years.
Stuart Bowman, director for energy and sustainability director with hurleypalmerflatt, says, ‘Those that see the CRC as an opportunity will benefit. The CRC is not a tax. Companies that understand it and approach it well can end up adding to their bottom line. We are in an era where sound environmental practice makes absolute commercial, as well as ethical, sense.