A top City consultancy has cautioned businesses who still have not registered for the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) to do so by the earlier date of 2nd September.
Carbon reporting specialist at the company said, even though the final deadline for registration is 30 September, the process needed to start much earlier. “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”, he said.
He also commented on recent analysis, which found that companies could be underestimating the impact of the CRC. Depending on the size of a company’s energy bills, the scheme could add 4%-6% to energy costs in 2011.
Companies needed to start moving on the process, “otherwise they face significant fines”. Missing the deadline will incur a one-off £5,000 fine with an additional charge of £500 per working day, up to a maximum of £45,000. “There is also potential reputational damage from a company being listed as non-compliant”, it was added. Some obligated companies have been told by the Environment Agency not to delay registration “even if your [emissions] information is not fully accurate”.
Businesses that shut down during the recession or operate through franchises could also face fines under the CRC. Qualifying companies that existed in 2008 have to register, even if they have since gone into administration to enable the administrator, the Environment Agency, to audit the scheme effectively.
Separately business groups are continuing to complain not enough has been done to explain or justify the CRC.
Businesses that are unsure if they need to register for the CRC need to make up their minds quickly.
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