The CRC registration is progressing very slowly but it is expected to speed up further after the holiday season.
As previously reported by Envido the registration for the UK’s CRC Energy Efficiency (cap-and-trade) scheme legislation is progressing very slowly. Although, the registration process runs to the end of September, at the end of June only 2,983 companies had made an information declaration and 522 companies had registered as CRC participants.
The Environment Agency, which is running the CRC Energy Efficiency scheme, had forecast that around 20,000 companies would need to disclose their energy use and 5,000 would need to join the scheme. The number of declarers seems to be accelerating, but there’s still a long way to go to reach the predicted 20,000 mark.
The process may well speed up further after the holiday season, but it has been predicted that the complex CRC registration as a participant is very unlikely to reach the predicted 5,000 figure in time. At the current rate, participants and declarers won’t all be on the register before January and March 2011 respectively.
Companies need to allow between two and four weeks for the Environment Agency to run checks for the CRC scheme
The final deadline for the CRC registration as a participant is September 30th but the process needs to start much earlier, since companies need to allow between two and four weeks for the Environment Agency to run checks, including anti-money laundering for company’s senior officers referred to in the process. In reality, the deadline is September 2nd for most companies.
The Environment Agency seems to be trying to avoid embarrassment over the issue and has written to organisations urging them to register for the CRC scheme even if their data is incomplete or inaccurate data. The Environment Agency has been reported to say 'We will work with you to resolve any errors in the information you supply. This will not affect your compliance.'
The bottom line is, though, that those organisations that don’t declare their electricity use in time face a fine of £500 for each half-hourly electricity meter they fail to declare. For prospective CRC Energy Efficiency scheme participants the penalties are a lot higher - £5,000 plus £500 a day until they do register (up to a maximum of £45,000). But, there is also potential reputational damage from a company being listed as non-compliant and included at the bottom of the CRC scheme annual league table.