Section 1 of Schedule 1 to the CRC Energy Efficiency Scheme Order 2010 (SI 2010/768) (the CRC Order) sets out the criteria for determining whether an organisation (X) is "responsible" for a supply of electricity. Three questions have to be asked:

If the electricity supply agreement is in Company A's name, and Company A pays for that supply on the basis of the meter that measures the supply and it consumes that electricity, then Company A will be the party responsible for that supply under the CRC.

However, if Company A is a facilities management company (or some other type of company that procures energy on behalf of other organisations and does not consume the energy itself) then A will not have to account for that supply under the CRC. This is known as the "Unconsumed Supply rule". Under the CRC, the company that consumes the energy would be responsible for that supply (assuming it can answer yes to the three questions that determine whether a supply exists for the purposes of the CRC).

In the example set out in the question in this Ask the team, it would initially appear that Company A is not responsible for the electricity supply as it is not consuming that supply and, hence, the supply in relation to Company A is an Unconsumed Supply. However, we also need to consider if Company A is Company B's landlord or licensor, or if Company A is part of a larger corporate Group. Both of these points are dealt with below.

If it turns out that Company A is the one who is responsible for the energy supply under the CRC, then Company B does not have to register as well just because it is the sole occupier of the site. Only one organisation needs to register in respect of any one energy supply: it is the organisation that is responsible for that supply.

For more information on how to work out who is responsible for an energy supply, see:

If Company A is Company B's landlord or licensor, then Company A will be responsible for the energy supply even if it is Company B that actually consumes the energy. This is known as the "landlord and tenant rule".

For more information on the landlord and tenant rule, see Practice note, CRC Energy Efficiency Scheme: overview: Landlords and tenants.

Even if Company A or Company B (as relevant) were responsible for the energy supply in question, they may not necessarily be the ones who have to register as a Participant if they form part of a larger corporate Group.

The CRC applies to the Highest Parent Undertaking in a corporate structure. There are also rules about large subsidiaries being able to register separately from the rest of their Group if they qualify as a Significant Group Undertaking.

For an explanation of how this works, see:

We have not been told whether Company A (as opposed to a third party) is Company B's landlord or licensor.

If Company A is a landlord (or licensor) and Company B is its tenant (or licensee) then Company A (or its Group,) will be responsible for the electricity supply, as the landlord and tenant rule "trumps" the Unconsumed Supply rule.

However, if some other arrangement is in place and Company B is not Company A's tenant (or licensor), then Company A will not be responsible for the electricity supply as this qualifies as an Unconsumed Supply. In these circumstances, Company B (or its Group) will be responsible for that electricity supply (assuming it can answer yes to the three questions that determine whether a supply exists for the purposes of the CRC).