With effect from April 2011, companies responsible for plants using more than 6,000MWh per year of electricity, will have to pay £12 for each tonne of CO2 they emit, rising to £14 per tonne from 2013.
 That's the warning form Grant Bailey, sales and marketing director at Thermal Energy International, speaking of the impact of the CRC Energy Efficiency Scheme, formerly the Carbon Reduction Commitment.
He advises that the mandatory UK carbon emissions trading scheme will equate to a tax of £76,000 for firms with a £1 million electricity bill, rising to £114,000 from 2014.
"Revenue from the sale of CRC allowances, totalling £1 billion a year by 2014/15, will be used to support the public finances, including spending on the environment, rather than recycled to participants," he explains.
As a cap and trade scheme, the programme restricts the amount of carbon dioxide that organisations release to the atmosphere, by allocating them with an allowance based on annual consumption.
The Government will allow the company to emit carbon dioxide by effectively selling it a license to do so. Then,, at the end of each year, companies and institutions must surrender sufficient allowances to cover their emissions, and can buy additional allowances, if needed, or sell any surplus.
"Revenues from the sale of allowances will be recycled back to organisations within the scheme," states Bailey. "Each organisation will be repaid in proportion to their historic emissions, with a bonus or penalty depending on the extent to which they have reduced their emissions compared with other organisations within the scheme."
But this is not just for the big boys, he warns. "From 2013, it is calculated that up to 20,000 additional organisations will be included in the scheme, as emissions other than carbon dioxide are included," says Bailey.
"After April 2013, allowances will be auctioned with a diminishing number of allowances available over time. Participants will also be able to buy allowances on the secondary market, or purchase EU Emissions Trading Scheme (EU ETS) allowances," he explains.
And the point is that participants successful in reducing energy consumption will not only save money on energy bills but will need to purchase fewer allowances and receive greater financial rewards through revenue recycling.
"These savings should be well in excess of the costs of participation. In addition, participants that perform well will also be placed higher in the performance league table, which will be published annually by the Environment Agency, boosting their reputation as an energy-conscious organisation," asserts Bailey.
He also advises that companies, such as Thermal Energy International, not only have a wide range of products to reduce energy consumption and carbon emissions, but can also support companies with finance, paperwork and product selection.
"The CRC Energy Efficiency Scheme is an opportunity for organisations to do their bit for the planet and save money. The strongest way to make improvements to energy efficiency is to make an investment that will not only reduce energy bills and provide a short-term payback, but will also significantly reduce the carbon emissions and the amount payable to the CRC Energy Efficiency Scheme," says Bailey.
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