With only 50 days left to the deadline of the mandatory CRC Energy Efficiency Scheme, only 1229 of the estimated 4000 eligible UK companies have signed up to cut their carbon emissions.
New figures published today by the Environment Agency show that between them these organisations have reported over half of the electricity consumption expected to be included within the scheme.
Large businesses and public sector organisations have just 50 days left to register for the mandatory scheme and the Environment Agency is now expecting an increase in registrations as the remaining organisations rush to sign up before the September 30 deadline.
Early projections estimated a maximum of 5,000 organisations were obliged to make a full registration for the CRC scheme. Revised figures show that the number of organisations required to participate is between 3-4000, as many businesses that qualify for the CRC are owned by larger conglomerates, that incorporate multiple businesses.
Under CRC, more than 20,000 organisations have to register with the Environment Agency by the end of September this year. As well as the organisations that have to make a full registration, a further 15,000 lower energy users have to make an information disclosure.
Consultancy firm WSP Environment & Energy forecasts that, even with a late upsurge in registrations, around 7,500 of those 20,000 obligated businesses will miss the deadline. 1,500 of these will be full registrants.
David Symons, Director at WSP Environment & Energy, comments: "Despite the initial clamour around CRC, many companies remain unsure about the extent of their obligations, and our forecasts show that there will be a significant shortfall in registrations.
"Those businesses which are well-organised are finding that CRC registration is not a complicated exercise. However, our findings indicate that a lack of awareness and engagement among participants could prevent thousands of companies from complying with the scheme on time.
"The Environment Agency is committed to supporting companies who make an effort. But with fines of £5000 for missing the registration deadline, and further penalties of up to £500 per day, the costs of non-compliance could be significant."
Although M&C Energy Group, the UK’s largest energy consultancy, has criticised the progress made in connecting with CRC participants and questioned the government’s effectiveness in communicating impending deadlines.
The advisers warn that many UK businesses and public sector organisations are unaware of the obligations placed on them and are therefore in danger of failing to properly register by the deadline date.
Chris Davenport, Director, from M&C Energy Group, said: “UK Energy and Climate Change Minister, Greg Barker, has admitted that the complexity of the scheme may have deterred some organisations in registering. There is simply no ‘may’ about it. M&C Energy Group, which represents businesses consuming £4bn of energy, has seen first hand how this legislation is leaving businesses cold.
“The simple fact of the matter is that many organisations don’t know whether CRC applies to them and therefore run the risk of missing the deadline and incurring significant fines.
“Additionally many will not have established the full extent of their organisational structure, a requirement necessary for full compliance with the scheme as set out by the regulations, and therefore at risk of failing to collect the necessary energy data in time in order to accurately complete their registration."
“Unfortunately, due to the complex nature of the scheme, an organisation cannot predict with accuracy where they will be in the league table of all participating organisations. This unknown makes investment criteria for capital to spend on efficiency improvements, as well as budgeting for the cost of the scheme,extremely difficult.”
Mr Davenport added: “There is no doubt that some organisations are at a disadvantage, particularly those which have historically made strides to reduce energy consumption. M&C Energy Group’s expertise will help clarify what clients need to do to operate efficiently and within the law, as well as understanding the financial implications of this legislation.”
Tony Grayling, head of climate change and sustainable development at the Environment Agency said: “Around a third of organisations that we expect to register for the CRC scheme have registered well in advance of the deadline.
“We would urge the remaining businesses to sign up now, and not leave registration to the last minute. Our dedicated CRC helpdesk is available to help businesses through the registrations process.”
Greg Barker, Energy and Climate Change Minister, added: “This new Coalition Government wants to boost energy efficiency in business because we know that saving energy saves money. The CRC will encourage significant savings through greater energy efficiency and importantly will make carbon a boardroom issue for many large organisations.
“My message to businesses today is to register now. I understand the original complexity of the scheme may have deterred some organisations and I want to hear suggestions as to how we can make the scheme simpler in the future.”
The London Fire Brigade is one organisation that has registered for the CRC. Energy efficiency projects put in place by the Brigade have led to savings of £260,000 in 2009/10 and over £1 million since the Brigade started focusing on the need to be greener. Despite the organisation growing overall carbon emissions on their buildings are down by over 18% on 1990s levels.
Greg Barker visited Westminster Fire Station this month to meet fire fighters and see some of the measures recently installed to improve the station’s energy efficiency. Chairman and Leader of London Fire and Emergency Planning Authority Councillor Brian Coleman, said: “This isn’t just about protecting the environment, it makes excellent business sense. Last year we saved the taxpayer over a quarter of a million pounds by making our fire stations greener and reducing our energy bills.”
The CRC Energy Efficiency Scheme is administered across the UK by the Environment Agency. The scheme is regulated by the Environment Agency in England and Wales, the Northern Ireland Environment Agency in Northern Ireland, and the Scottish Environment Protection Agency in Scotland.
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