CRC Energy Efficiency Scheme Summary of key points

Schneider Electric 2 - Energy EMEA – Rachel Cooper – August 2010 CRC Energy Efficiency Scheme ●Qualification ●At least one half hourly meter settled on the half hourly market ●Total electricity usage of 6,000MWh in full ●How it works ●Organisations purchase allowances at £12 tC0 2 in April for following year ●A league table is prepared based on actions taken for the early action metric, absolute emissions and growth ●Dependent on position on league table, organisation will receive money back in October +/- 10% in year 1, +/- 50% by year 5 ●How can organisation try to perform well? ●Year 1 Early action metric - ensure that AMR is installed and measuring on incomers and organisation has achieved Carbon Trust Standard or equivalent for majority of organisation ●Subsequent years – reduce amount of C0 2 produced and in proportion to organisational growth ●The organisation will save more through targeted energy reduction than it will achieve/lose through CRC

Schneider Electric 3 - Energy EMEA – Rachel Cooper – August 2010 Participation ●Applies to all companies, partnerships, public bodies, charities and other incorporated bodies that have operations in the UK ●Large subsidiaries can elect to be in the scheme separately from their parent company (known as Significant Group Undertakings or SGUs) ●Landlords who are responsible for the supply of energy to the tenant will be responsible for energy usage under CRC ●FM/CEM organisations ●If FM/CEM company buys energy exclusively for a SINGLE client responsibility for CRC participation is with the client. ●This will also apply to energy purchased for CHP where the CHP output is exclusively used for one client. ●If FM/CEM contractor buys energy and supplies to SEVERAL clients e.g an industrial estate, responsibility is with the FM/CEM contractor.

Schneider Electric 4 - Energy EMEA – Rachel Cooper – August 2010 Qualification

Schneider Electric 5 - Energy EMEA – Rachel Cooper – August 2010 CRC Energy Efficiency Scheme – qualification & requirements ●Information disclosure ●At least one HHM settled on HH market ●Declare all HHMs ●Calculate energy usage through HHMs including AMR ●If less than 3,000 MWh consumed in qualifying year ●tick box on CRC registry ●If more than 3,000MWh consumed in qualifying year ●disclose annual consumption on CRC Registry

Schneider Electric 6 - Energy EMEA – Rachel Cooper – August 2010 Information Disclosure ●Registration must be complete by 30 September 2010 ●If not, fine of £500 per day per half hourly meter ●This involves: ●List of all HHMs & their MPAN numbers ●Total annual supply through HHMs

Schneider Electric 7 - Energy EMEA – Rachel Cooper – August 2010 First steps ●Compliance ●Assign responsibility for CRC – 2 officers and management representative ●Identify highest group level and therefore full organisation impact ●Monitor energy usage and prepare report ●Improvement ●Set targets for league table improvement & energy reduction ●Metering, monitoring and targeting ●Carbon Trust Standard or equivalent ●Carbon Management Programme ●Trading & procurement ●Budget for cash flow and net costs ●Consider trading