Carbon Reduction Scheme: 30 September deadline

| Sourced From Shoosmiths |

The deadline for participants to register with this new scheme is 30 September 2010 and yet only 2600 have registered to date out of a predicted 5000. Late registration risks a hefty fine.

Full participants must register using the online registry on the Environment Agency’s website. The registration fee for participants is £950 and there is an annual fee of £1,290 for administration of the account.

If a participant fails to register by the deadline it risks a fixed fine of £5,000. It also has to pay a further £500 for each working day until registration for a maximum of 80 working days. The EA will also publish non-compliance.

The government has indicated that it will take a lenient view on fining companies that are late to register so long as these companies are making a genuine effort to comply. However, it is likely that the longer the delay, the greater the risk of the fines being imposed.
Disquiet with complexity

Much concern has been voiced recently about the scheme being overly complex and a burden to businesses.  The Committee on Climate Change, a statutory body that advises the government on how to meet its emissions targets, has been the latest to level criticism. It was asked to consider the cap on allowances for Phase 2 of the Scheme, but has commented more widely and recommended that the Scheme be re-designed before the next Phase to reduce its complexity.

The Energy and Climate Change Minister, Greg Barker, has already asked for suggestions to simplify the CRC Scheme. He has told business leaders that the government is unhappy with the bureaucracy involved in the Scheme it has inherited and that it would be reformed to make it more business friendly.
Updated guide for landlords and tenants

Despite extensive discussions, no consensus has yet been reached in the property industry for the recovery of CRC costs between landlords and tenants. Landlords have disagreed amongst themselves.

A month ago the British Property Federation published a second edition of its guide on the Scheme for landlords and tenants, which is aimed at helping owners and occupiers apply it to commercial property. The lack of agreement on sharing of CRC costs is an illustration of the complexity of the Scheme and the difficulty of shoe-horning it into a lease.

There is also a reluctance to draft complex clauses which may become redundant if the Scheme is revised.

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