Essentially, the carbon reduction commitment will affect organisations whose half hourly electricity consumption totals more than 6,000 MWh per year (equivalent to approximately £500,000 annual spend). Any organisation that falls within this category will be required to record account for all energy (other than transport fuels), including electricity, gas and oil.
Energy consumption during 2008 will be used as the qualifying year to identify if an organisation will be subject to the Carbon Reduction Commitment. Records of electricity use will be taken from mandatory half hourly meters, voluntary half hourly meters, remote read meter readings and pseudo hal hourly meters.
There will be a 3 year introductory phase from 2010 to 2012 – during this phase the price of CO2 will be fixed – the current figure is £12 per tonne although this is subject to confirmation prior to launch. Initially there will be no limits on the allowances available for purchase. In 2013 full auctioning starts via sealed bids. The Environment Agency will oversee the programme, although reporting will be self certified with 20% of the members audited per annum.
Source:The Green Card