A spokesperson from PricewaterhouseCoopers (PwC) has warned businesses of the fines and costs associated with non-registration or late registration to the Carbon Reduction Commitment (CRC) Energy Reduction Scheme.
The registration deadline is 30th September 2010; however businesses need to allow between two and four weeks for the Environment Agency to run checks, including anti-money laundering for senior officers referred to in the registration.
Henry Le Fleming, carbon reporting specialist at PwC said: “Registration is a more pressing issue than many businesses think.
“In reality the deadline is September 2nd for most companies. Companies cannot afford to leave registration until the last minute. They need to start moving on the process, and fast, otherwise they face significant fines.
“Missing the deadline will cost £5000 and incur an additional charge of £500 per day, up to a maximum of £45,000. There’s also potential reputational damage from a company being listed as non-compliant.”
When the scheme was launched PwC found that companies could be underestimating the impact of CRC regulations, illustrating that the scheme could add more than 4% to 6% to energy costs in 2011 depending on the size of a company’s energy bill
PwC analysis demonstrated that poor performers with an energy bill of £1m could face an additional £500,000 costs on top of their energy bill over the next five years. By 2015, this could equate to around an additional 20% on the energy bill each year.
But companies who plan ahead and perform well could turn an early loss into a gain, seeing their energy costs reduced by over 8% in 2015. For a company with a total energy bill of £1 million, this would be worth just over £85,000 in 2015 alone, or £150,000 over the course of the next five years.
As of the 11th August, only around 1,200 of the estimated 4,000 businesses obligated to participate in the CRC in the UK had registered with the Environment Agency.
To see if you are required to register as a participant, or if you need to make an information disclosure, click here.
Source: Lancashire BEA
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