CRC countdown blog: don’t count on leniency

13/09/10 5:45 pm By Richard Heap

There is less than three weeks left to register for the government’s Carbon Reduction Commitment Energy Efficiency scheme. Here, Knight Frank head of sustainability David Goatman gives his view on what you should be doing now:

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The final countdown really is upon us.

Based on current guidance it is taking the Environment Agency two weeks to process registrations for full participants of the CRC scheme. If you like to cut things fine then this Wednesday really is your last opportunity to register.

For those registering as an information disclosure you have a bit more breathing space. You have right up to the deadline of 30 September for information disclosures, although it is still very much a case of the sooner the better.

As with so many aspects of the roll out of the CRC scheme, the measures to be taken against those who fail to meet the deadline are uncertain. Yes we know the letter of the law is an immediate £5,000 fine and £500 per day up to a maximum of £45,000. But will the Environment Agency really slap fines on organisations who have tried to register by the deadline but perhaps didn’t factor in the 2 week processing period? Or those who have started the process and been in contact with the EA but not completed the full process by 30 September? It is certainly not worth taking a risk on leniency.

Whilst many would agree the aims of the CRC scheme are laudable, we must surely ask whether it has been implemented in the most effective way thus far. The trend has been for guidance to be issued much too close to deadlines. Unit trust guidance was issued only days before the disaggregation deadline earlier in the year. Only last week further guidance was issued on joint ventures with no majority shareholder.

If the scheme administrator is constantly playing catch-up, can the government really name and shame and impose fines on companies who are trying their best to wade through the bureaucratic quagmire? I wouldn’t bet against it.

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One Comment »

  • Katie Brown said:

    Hi Richard,
    I was part of a discussion on Twitter with Malcolm Fergusson (Head of Climate Change) and I posed the question

    “how soon after the 30th September will fines be handed out to those that don’t register that should?”

    to which re responded
    “ We won’t be rushing to fine people; our first priority is to help everybody to register who needs to #crcqanda”

    This may be useful for your readers. For more advice, they can also visit: http://www.environment-agency.gov.uk/business/topics/pollution/98263.aspx

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