
In an effort to reduce carbon emmissions the UK government is introducing the Carbon Reduction Commitment (CRC) in April 2010. This legislation applies to all UK companies consuming over 6,000 megawatt hours of electricity per year.
Whilst this legislation is a laudable effort to reduce the UK’s carbon emissions, it could have the unfortunate effect of disadvantaging the UK outsourcing industry and favouring offshore outsourcing operations.
The CRC attributes carbon responsibility to the organisation paying the energy bills. If a datacentre is outsourced this responsibility moves to the outsourcing provider and this provider must buy carbon credits for the power consumed.
The cost of carbon credits adds to the UK outsourcer’s costs but a non-EU offshore outsource operator is not subject to these charges.
This immediately puts UK outsourcers at an economic disadvantage and it remains to be seen how they will react to this.
If you are one of the 10% of companies affected by the CRC and unable to comply by April 2010, or are one of the estimated 42% of eligible companies who are not up to speed with the CRC then contact us for help.