For organisations that are subject to the CRC Energy Efficiency Scheme, taking early action prior to the launch of the Scheme will not only enhance your reputation by gaining you a higher position in the CRC league table, but will also save money.

The Government's use of a League Table will act as a major incentive for emission reductions, and may prove to be more important than the financial drivers. The extent of the impact on an organisation's reputation will depend on factors such as the industry in which they are involved, the nature and performance of competitors, the sensitivity of their reputation to publicity and the magnitude of customer and other stakeholder responses. As a general rule, though, a bad position on the league table is likely to harm your reputation.

In its first year, April 2010 to March 2011, the league table will rely exclusively on Early Action Metrics to determine the bonuses or penalties. The Early Action Metric is your opportunity to start measuring your energy usage, and get your energy usage data in shape, so you can positively influence your position on the first league table. In year two, 40% of the league table position will be determined by the Early Action Metric score. Our recommendation is, if you are caught by the Scheme, act now.

Action to be taken now
Instruct energy efficiency consultants to conduct a CRC corporate assessment to ascertain if your organisation needs to register for CRC. Anthony Collins Solicitors LLP has a relationship with a leading firm of consultants who will review your:-

  • Corporate structure – including subsidiaries, joint ventures and franchises
  • Carbon and energy data quality
  • Billing information
  • Estate register – including landlord and tenant relationships
  • Current energy and carbon reduction policy

A corporate assessment will tell you if you need to register for the CRC with the Environment Agency or alternatively provide an Information Disclosure to them. It will also include a Board Report outlining the impact of the CRC on your organisation including cash flow, operational and personnel implications with recommendations contained in a CRC action plan including:-

  • Carrying out an audit to measure your organisation's carbon footprint
  • Plan for attaining the Carbon Trust Standard or equivalent, such as BS16001 certification,

and install automatic metering (AMR) to claim the 100% Early Action Metric credit

  • Get set up to produce annual carbon reports and evidence packs
  • Start managing your energy usage
  • Start buying and selling carbon allowances

All the above will help you not only to avoid fines, but proactively to take advantage of the Early Action Metric and gain a good position in the League Table.

You can also ask us to advise you on how the Scheme works. If you are subject to it we can advise you further, on the implications for your leases and business contracts, and on your procurement of energy-saving technology.

Options

Non-compliance is not a realistic option. Looking at it defensively, penalties for inaction could easily amount to £50,000.

The smart players will take action now and seek a positive rather than negative position in the league table. Are you taking action?

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.