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CRC: Environment Agency is concerned that organisations are delaying registering
Practical Law UK Legal Update 7-502-9542 (Approx. 4 pages)
CRC: Environment Agency is concerned that organisations are delaying registering
by PLC Environment
| Published on 03 Aug 2010 • UK |
An update on an Environment Agency newsletter, published on 29 July 2010, giving further guidance on the registration process under the CRC Energy Efficiency Scheme (CRC).
Speedread
The Environment Agency published a newsletter on 29 July 2010 giving further guidance on a number of things, including the timing of the registration process under the CRC Energy Efficiency Scheme (CRC).
Background: the CRC
Terms that appear in capital letters in this update are defined in Practice note, CRC Energy Efficiency Scheme: PLC glossary and abbreviations.
The CRC Energy Efficiency Scheme (CRC) is a new emissions trading scheme for the private and public sector in the UK.
The deadline for registering as a Participant in Phase 1 of the CRC or making an Information Disclosure is 30 September 2010. Failure to register or to make an Information Disclosure is subject to civil penalties.
For more information about the CRC, see the CRC Survival Kit.
Environment Agency newsletter
The Environment Agency (EA) published a newsletter on 29 July 2010:
- Urging organisations to register as soon as possible, even if the applicant's registration information is not fully accurate.
- Providing further tips on how to register, including clarification on which organisational structure should be used when registering and how to claim a Climate Change Agreement (CCA) exemption.
- Indicating that it has published a new case study on how Wakefield Council is preparing for the CRC (in particular, how that local authority is dealing with data from schools and Private Finance Initiative (PFI) projects).
Do not delay in registering
The EA has said it is aware that many organisations are delaying their registration due to concerns over how the EA will handle any errors made in the applications.
To try and allay these concerns, and encourage organisations to register as soon as possible, the EA has said as follows:
- The earlier an organisation registers, the more time the EA will have to work with that organisation to check and correct any errors.
- Supply data can be estimated for registration but organisations will have to account for all Half Hourly Meters (HHMs).
- The EA will be carrying out registration audits to check for errors but its aim is to assist registrants to correct genuine errors.
- The EA will not publicise any errors but will use the information generically to assist other organisations.
- The EA's aim is to assist and support all registrants to complete registration as accurately as possible.
- The EA will be using a "light touch approach" to ensure that it only takes action where absolutely necessary.
The EA is urging organisations that need to register or make an Information Disclosure to do so at the earliest opportunity. Doing this will allow the EA time to assist those organisations before the 30 September 2010 deadline, when registration closes.
The EA has reminded organisations that the two-week period required for validation may increase if demand is high in the final weeks of the registration window. The validation process must take place in order for organisations to complete their registration.
On 2 August 2010, the EA published details of the organisations that have registered for the CRC so far and also of the organisations that have made an Information Disclosure (see Environment Agency: Registry).
To date 1,101 organisations have registered for the CRC and 3,890 organisations have made an Information Disclosure. These figures represent approximately one fifth of the 5,000 organisations expected to register as Participants and one fifth of the 20,000 organisations expected to make an Information Disclosure. As over four of the six months of the registration window have now passed, there are concerns that many organisations will fail to complete their registration process by the 31 September 2010 deadline.
Clarification on which organisational structure needs to be registered
The EA has clarified that information regarding meters and the energy supply through those meters provided at registration, must relate to the organisation's structure that existed on 31 December 2008. However, the information that the organisation must provide on its organisational structure when it registers for the CRC should reflect the structure that exists at the point when the organisation registers (its current structure).
Clarification on which emission conversion factors to use when claiming a CCA exemption
When claiming a CCA exemption under the CRC, organisations will have to specify the emissions that are covered by the exemption in tonnes/CO2.
The EA has indicated that organisations can use either of the following to calculate these emissions:
- CCA emission conversion factors.
- The CRC emission conversion factors set out on page 12 of Environment Agency guidance: CRC Energy Efficiency Scheme: Conversion factors and emissions factors (guidance).
This is different from what is said on page 11 of the guidance, which appears to indicate that only the CRC electricity emissions conversion factors should be used.
For organisations that have CCA Emissions that are near to 25% of their Total Emissions, a different result may be achieved depending on which emission conversion factors are used. For example, using the higher emission conversion factor may result in a CCA exemption being available, which in turn could result in that Group Member or Applicant being exempt from the CRC.
New case study
The EA has added a new case study to its website on how Wakefield Council is preparing for the CRC (in particular, how that local authority is dealing with data from schools and PFI projects).
For more information, see Environment Agency: CRC case studies.