The CRC Energy Efficiency Scheme (Amendment) Order 2011

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the CRC Energy Efficiency Scheme Order 2010 (“the Principal Order”) and comes into force on 1st April 2011.

Article 2 amends article 2(1) of the Principal Order by extending the first phase by one year and substituting a new series of phases for the trading scheme in place of the original phases. The phases, other than the first and seventh phases, will be six years and the second phase will commence on 1st April 2013. The seventh phase will be five years so that the scheme ends on 31st March 2046. Each phase will overlap the previous phase by one year instead of two years.

Article 3 amends and adds a number of new definitions to the interpretation provision in the Principal Order.

Article 4 amends article 9(1) of the Principal Order by redistributing the responsibilities for various provisions under the Principal Order between the Environment Agency, the Scottish Environment Protection Agency and the chief inspector.

Article 7 amends article 29(3) of the Principal Order by limiting the exemptions of Part 3 that do not apply to a public body. As a result a public body may claim an electricity generating credit.

Article 9 amends article 53 of the Principal Order as a consequence of extending the first phase by one year and reducing each phase after the first phase from seven years to six years. The overlap between phases is reduced to one year so a participant is required to surrender allowances from the second year of a phase. Article 9 also corrects a reference error in the Principal Order.

Article 10 revokes article 62 of the Principal Order which required those using between 3000 and 6000 MWh to provide certain information to the administrator under the Order.

Articles 13 and 14 amend articles 75(2) and 77(6) of the Principal Order as a consequence of extending the first phase by one year.

Article 15 amends article 78(5) of the Principal Order as annual reports are now required in each year of a phase.

Article 16 amends and clarifies article 95(3) of the Principal Order.

Article 17 removes the penalty contained in article 103 of the Principal Order as the provision to which it relates in the Principal Order (article 62) has been revoked.

Article 18 amends Schedule 1, paragraph 14 to the Principal Order by disapplying the exception to the exemption contained in paragraph 13 of Schedule 1. Where a Northern Ireland Department has unconsumed supply which it passes to another Northern Ireland Department that is occupying premises with its permission that supply is considered to be a supply to the occupying Northern Ireland Department for the purposes of CRC.

Article 20 amends Schedule 5, paragraph 12 of the Principal Order to provide that where an applicant applies for a CCA exemption on registration the applicant can report emissions for a target period ending in the qualification year.

Articles 5, 6, 11, 12, 16, 19 and 21 correct various reference errors in the Principal Order.

An Impact Assessment of the effect that this instrument will have on the costs of business and the voluntary sector accompanies the Explanatory Memorandum which is available alongside the instrument on www.legislation.gov.uk.