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The Climate Change Agreements, CRC Energy Efficiency Scheme and Energy Savings Opportunity Scheme (Amendment) (EU Exit) Regulations 2020
Jurisdiction: UK
Commencement: IP completion day
Amends:
- The Climate Change Agreements (Amendment of Agreements) (EU Exit) Regulations 2018
- The CRC Energy Efficiency Scheme (Amendment) (EU Exit) Regulations 2018
- The Energy Savings Opportunity Scheme (Amendment) (EU Exit) Regulations 2018
Mini Summaries
The Climate Change Agreements (Amendment of Agreements) (EU Exit) Regulations 2018 set out the eligibility criteria for facilities wishing to enter into Climate Change Agreements (CCAs) in order to receive a discount on their Climate Change Levy (CCL). The CCl is a tax on electricity, natural gas, liquefied petroleum gas and solid fuels supplied to the business and public sectors. The CCA scheme was introduced in order to allow certain energy intensive businesses to pay a reduced rate of CCL in return for entering into sector-energy specific energy efficiency agreements.
The CRC Energy Efficiency Scheme (Amendment) (EU Exit) Regulations 2018 (CRC), formerly the carbon reduction commitment, is designed to promote energy efficiency and reduce carbon emissions in the UK. CRC targets emissions that are not included within Climate Change Agreements (CCA) or the EU Emissions Trading System (EU ETS).
The Energy Savings Opportunity Scheme (Amendment) (EU Exit) Regulations 2018 introduce the Energy Saving Opportunity Scheme which is a mandatory energy assessment and energy saving identification scheme for large undertakings and their corporate groups. All must audit their energy use every four years.
Amendments
The Climate Change Agreements (Amendment of Agreements) (EU Exit) Regulations 2018
The 2018 Regulations are amended to change the term ‘exit day*’ to ‘IP completion day**’ (in relation the UK leaving the EU). This means the 2018 Regulations will come into force on IP completion day instead of exit day. This does not make any changes to duties.
*Exit day was 31st January 2020.
**IP completion day is the day the transition period ends (31st December 2020).
The CRC Energy Efficiency Scheme (Amendment) (EU Exit) Regulations 2018
The 2018 Regulations are amended to change the term ‘exit day*’ to ‘IP completion day**’ (in relation to the UK leaving the EU). This means the 2018 Regulations will come into force on IP completion day instead of exit day. This does not make any changes to duties.
*Exit day was 31st January 2020.
**IP completion day is the day the transition period ends (31st December 2020).
The Energy Savings Opportunity Scheme (Amendment) (EU Exit) Regulations 2018
The 2018 Regulations converted the financial thresholds for ESOS from euros to pounds sterling to reflect the UK’s exit from the EU. This conversion originally applied from exit day* but this has now been updated to be relevant from IP completion day**.
*Exit day was 31st January 2020.
**IP completion day is the day the transition period ends (31st December 2020).
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