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CRC: Government publishes discussion paper on how the scheme applies to academies
Practical Law UK Legal Update 3-507-2783 (Approx. 4 pages)
CRC: Government publishes discussion paper on how the scheme applies to academies
by PLC Environment
| Published on 18 Aug 2011 • England, UK |
The Department of Energy and Climate Change (DECC) published a discussion paper, on 15 August 2011, seeking views on options for how academies in England should be treated under the CRC Energy Efficiency Scheme.
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The Department of Energy and Climate Change published a discussion paper, on 15 August 2011, seeking views on options for how academies in England should be treated under the CRC Energy Efficiency Scheme (CRC). This follows on from concerns by local authorities that the current grouping of academies with local authorities under the CRC is "untenable". The deadline for comments is 23 September 2011.
The discussion paper forms part of the government's wider proposals to simplify the CRC.
On 15 August 2011, the Department of Energy and Climate Change (DECC) published a discussion paper setting out several options for how academies (in England only) should be treated under the CRC Energy Efficiency Scheme (CRC). This follows concerns by local authorities that the current grouping of academies with local authorities under the CRC is "untenable", particularly in light of the arm's length relationship they have with academies.
The deadline for comments is 23 September 2011. There will be a formal consultation at a later stage if the government decides to make any changes as a result of the feedback to the discussion paper.
The discussion paper sets out four options:
- Option 1: Maintain the status quo.Under the current rules, state-funded (maintained) schools and academies are grouped with the relevant local authority for the purposes of the CRC. This means a local authority has to report on, and buy allowances for, emissions associated with those schools' and academies' energy consumption, regardless of whether the local authority has any power to influence their behaviour. The School Finance (England) Regulations 2011 (SI 2011/371) gives local authorities the ability to recharge the cost of CRC allowances for schools and academies to the central part of the dedicated schools grant. However, local authorities have expressed concerns that local budgets for state-funded schools are subsidising CRC allowances for academies.The Department for Education is currently consulting on reforms to school funding. If the government were to decide to leave the current CRC rules unchanged, it is proposed that the cost of CRC allowances could be retained centrally before calculating budgets for state-funded schools and academies.
- Option 2: Require all state-funded schools that meet the qualification criteria to participate in the CRC independently, rather than as part of the relevant local authority. It is not clear from the discussion paper but presumably this would include academies as well.
- Option 3: Require all academies that meet the qualification criteria to participate in the CRC independently. However, state-funded schools would continue to be treated as part of the relevant local authority for the purposes of the CRC.
- Option 4: Treat academies as part of the relevant local authority for the purposes of qualification but then allow academies to be disaggregated so that they participate in the scheme independently. However, state-funded schools would not be entitled to disaggregate from the relevant local authority.
This discussion paper forms part of the government's wider proposals to simplify the CRC. For more information, see:
For more information on:
- How the CRC applies to local authorities, schools and academies, see Practice note, CRC Energy Efficiency Scheme: impact on public sector organisations.
- The CRC in general, see the CRC Survival Kit.