Energy bills could rise due to incorrect CRC reporting

Firms could be adding to the cost of their energy bills if they get their environmental reporting wrong, according to new research by PricewaterhouseCoopers.

Firms across the country could potentially add between 5 and 11 per cent to their energy bill costs if they submit the Carbon Reduction Commitment (CRC) report incorrectly.

The new report, which must be submitted by large public and private firms for the first time by 31 July 2011, could be spot-audited by the Environment Agency.

Companies failing to submit the CRC report by the deadline will face a fine of £5,000, plus £500 for every further day the report is outstanding. Companies submitting incorrect reports will be fined £40 a tonne for over or under reporting.

Carbon Reporting Specialist at PwC, Henry Le Fleming, said, "Many companies won't have stress-tested their processes, systems and controls for gathering the data. If they have large numbers of sites with shared responsibility for energy bills it could be more difficult than expected."

"The regulatory powers are wide, and while it's not certain how strictly they will be enforced, with late reporting or incorrect data both attracting fines, the clock is ticking for companies to get this right over the coming weeks before the deadline," he added.