CRC Reports - only days left for submissions

Avoid penalties now!

The first CRC reporting deadline is rapidly approaching and there are substantial penalties for non-compliance. Proposed simplifications to the CRC Energy Efficiency Scheme (CRC) may have just been announced but these changes are unlikely to be implemented until the start of the second phase, in April 2013.

By 29 July 2011, CRC participants are required to have submitted their 'Footprint Report' (a summary of the total energy consumed in the Footprint year) and their 'Annual Report' (a summary of the participant’s CRC emissions from the first year of the CRC).

There is considerable overlap or duplication in the information each report contains but there are separate penalties for failure to submit the reports in time.

Penalties

The CRC Order sets out a scheme of civil penalties for failures in respect of Footprint and Annual Reports which start with a fine of £5,000 for failure to submit each report by the 29 July deadline. That financial penalty increases at the rate of £500 per working day of delay for the next 40 days (up to 26 September). If the reports have not been submitted by then the 'late' penalty becomes £40,000. All instances of non-compliance will be published by the administrators.

Annual Report

Further penalties then apply in the case of failure to submit the Annual Report by 26 September (the end of the 40 working day period) including:

• Automatic placing at the bottom of the performance league table
• Independent determination of the participant’s emissions
• An additional financial penalty of £40 for each tonne of determined emissions

Comment

Penalties under the CRC were broadly intended to ensure that non-compliance would be more expensive than compliance. They appear to succeed in that respect in relation to the reporting requirements. While changes to future reporting requirements are proposed, these first submissions are proceeding as originally intended and compliant participants will expect the CRC to be properly enforced. In fact, some of the simplifications that are being proposed depend upon an analysis of this data. Failure to supply it in time would be a costly error.

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