Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

Autumn statement: CRC energy efficiency scheme to stay put until 2016

CRC is thought to be particularly damaging to the data centre industry

Article comments

The Carbon Reduction Commitment (CRC) is here until at least 2016, but the coalition government has pledged to simplify the scheme and abolish its Performance League Table, which is used to rank large organisations according to their energy efficiency.

Chancellor George Osborne has in the past criticised the CRC, which was established by the previous Labour government, claiming that it is “cumbersome, bureaucratic and imposes unnecessary cost on business”.

In the March budget statement, Osborne said that the government would seek major savings in the administrative cost of the CRC for businesses.

“If those cannot be found, I will bring forward proposals this autumn to replace the revenues with an alternative environmental tax,” he said at the time.

However, Osborne failed to give any more information about of how the scheme would be simplified during yesterday's Autumn statement, claiming that details would be published by the Department of Energy and Climate Change.

“A full review of the effectiveness of the CRC will be held in 2016 and the tax will be a high priority for removal when the public finances allow,” he said.

The news received a tentative welcome from IT industry and business campaigners, who have been fighting to get the CRC scrapped over the last couple of years – though some believe that the plans do not go far enough.

“We need a firm commitment now to scrap the scheme when public finances allow, and to replace it with a more coherent approach to business energy efficiency,” said the CBI Director-General John Cridland.

The CRC has been accused of being particularly damaging to data centres, which though energy-intensive play a vital role in decarbonising societies by supporting the digitisation of goods and service that were once delivered as physical entities, as well as through transport avoidance and smart grids.

“While the CRC remains it has, we hope, been mortally wounded,” said Kate Craig-Wood, MD of IT hosting company Memset.

“The Treasury website tells us that they intend to scrap the league table – ridiculously complex and fundamentally pointless since it compares apples with oranges – and the CRC as a whole is coming under review in 2016. I hope that it will be canned at that point and replaced with something more sensible.”

Craig-Wood described the CRC as a “truly cretinous piece of legislation,” highlighting that data centres are now very mobile as, with the advent of cloud computing, organisations no longer need to "lift and shift" servers to move their applications and data.

“Under the CRC it becomes a lot simpler to off-shore one's energy intensive operations than actually becoming more efficient – not something that would be good for the environment overall,” she said.

Instead, Craig-Wood (together with Britain's high tech trade association Intellect UK) advocates an expansion of the Climate Change Levy. This would be more fair, she claims, because it would cause small increases in energy costs for all businesses, not just large energy-hungry ones.

“But therein lies its political un-palatability,” added Craig-Wood.



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *