Summary information on the CRC Energy Efficiency Scheme

The Carbon Reduction Commitment (CRC) Energy Efficiency Scheme (“CRC Scheme”) is a legislative regime being introduced as part of the British government’s strategy to improve energy efficiency and reduce CO2 emissions.

The CRC Scheme is regulated by the Climate Change Act 2008 (UK) and is proposed to be administered by the UK Environment Agency. The CRC Scheme places mandatory obligations on all companies with half-hourly metered electricity consumption which, during 2008, exceeded 6,000 MW. In common with all other companies in our industry with a significant UK presence, Equinix is obliged to participate in the CRC Scheme.

The CRC Scheme formally commenced in April 2010 with a requirement that participants register under the CRC Scheme by the end of September 2010. Equinix has taken all the necessary steps to complete the registration process on time.

More information can be found at

• Department of Energy and Climate Change UK
• Environment Agency UK

Recently announced changes

In October 2010 the British Government announced changes to the CRC Scheme as part of the Government Spending Review.

Page 62 of the official Spending Review document contains the following information on the changes:

“2.108 The CRC Energy Efficiency scheme will be simplified to reduce the burden on businesses, with the first allowance sales for 2011-12 emissions now taking place in 2012 rather than 2011.

Revenues from allowance sales 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.

Further decisions on allowance sales are a matter for the Budget process.” In addition the UK Department of Energy & Climate Change states that the Government aims to begin a public dialogue with participants on proposals to further simplify the scheme.

While Equinix waits for full details of the exact means by which the CRC Scheme will be administered, the company is committed to taking any reasonable steps available in order to mitigate the effect of the CRC Scheme on the charges paid by our customers, and continues to work with energy advisers, consultants and industry groups to understand the effect these changes will have on our business and wider industry.

If you have any questions on the CRC Scheme and Equinix’s response to its introduction, please contact your Account Manager, who will direct your query to the appropriate Equinix personnel.