Environmental Update (August 2010)

Deadline for CRC Registration Looms

Businesses face a race to register as the September deadline looms. Organisations using significant amounts of electricity have to commit to a mandatory scheme to cut their carbon emissions.

Figures published in August by the Environment Agency show that over 1,200 organisations have registered for the Carbon Reduction Commitment Energy Efficiency Scheme (CRC), however up to 3,800 other organisations have failed to register, with many planning on leaving it to the last minute.

What do I need to do?

If you are obligated under the CRC as a participant (i.e. your organisation's half hourly metered electricity supply was 6,000MWh or more in 2008) you will need to register.

The first compliance year runs from April 2010 to March 2011, but organisations need to register between 1^st April – 30^th September. This is known as the 'introductory phase' and is a reporting only year. This is also the footprint year and the first annual reporting year. You will not need to purchase any allowances until April 2011.

On registration you will need to pay a fee of £950 and provide:

• information about your organisation including details about any subsidiary companies;
• identification information for the person(s) responsible for your organisation's participation in the CRC;
• a list of all your organisation's HHM settled on the half hourly market; and
• the total half hourly electricity you used between 1^st January 2008 and 31^st December 2008 (this can be estimated).

A subsistence fee of £1,290 for your online registry account will also need to be paid.

If you qualify as a participant but fail to register before 30^th September 2010:

• you can be fined £5,000 plus a further £500 for each subsequent working day of delay up to a maximum of 80 working days; and
• your non-compliance will be published.

Affected organisations also have to measure and record their business' half hourly electricity consumption between 1^st April 2010 and 31^st March 2011. Energy suppliers should be able to provide an annual statement of consumption. You must submit a footprint report and annual report on your emissions online between 1^st April 2011 and 29^th July 2011.

What if I have half-hourly meters but don't use more than 6,000MWh of electricity?

If your half hourly metered electricity supply was below 3,000MWh you still need to make an information disclosure but you do not need to report any data on your electricity consumption. You only need to provide your organisation's contact details and tick the appropriate box in the online form.

If your half hourly metered electricity supply was between 3,000MWh and 6,000MWh in 2008 you will have to make an information disclosure between 1^st April 2010 and 30^th September 2010.

The following information needs to be provided in the disclosure:

• make a list of the meter numbers from your half hourly meters;
• add together the electricity supplies from all the half hourly meters you had between 1^st January 2008 and 31^st December 2008;
• make sure you did not receive qualifying supplies of more than 6,000 MWh through half hourly meters during that period - if you did, you must comply fully with CRC; and
• use the online CRC registry to submit your information disclosure.

If you fail to make an information disclosure you can be fined £500 for each settled half hourly meter you did not disclose and your non-compliance will be published.

If your half hourly metered electricity supply was below 3,000MWh you still need to make an information disclosure but you do not need to report any data on your electricity consumption. You only need to provide your organisation's contact details and tick the appropriate box in the online form.

If you have any questions relating to the CRC then please contact the Mentor 24/7 Advice line on 0800 634 7006. A guidance note covering the CRC will be published to our website soon.