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Are you ready for the CRC Energy Efficiency Scheme?

The CRC Energy Efficiency Scheme (formerly known as the Carbon Reduction Commitment) was brought into force by the CRC Efficiency Scheme Order 2010 ("the CRC Order") as from April 2010.

Currently we are in the registration period for the Scheme. This runs to September 2010. Failure to register results in immediate fines of £5000 with daily fines thereafter of £500 up to a maximum of 80 days.

The Scheme is a mandatory cap and trade scheme in the United Kingdom that will apply to large non energy-intensive organisations in the public and private sectors. DECC estimates 20,000 organisations will in some way be affected by the Scheme.

The aim of the scheme is to improve energy efficiency and reduce CO2 emissions. Those participating will have to monitor emissions and purchase allowances to cover those emissions. There will be fines for not surrendering allowances equal to emissions and a league table of comparative performance of participants will be published.

Qualification as a full participant depends on an organisation having at least one half hourly meter settled on the half hourly market and the 2008 annual electricity supply via all such meters being 6000+ MWh.

Qualification for participation raises a number of complex legal issues surrounding matters such as: (i) group organisations and subsidiaries; (ii) franchise agreements; (iii) joint ventures and PFIs; and (iv) landlords and tenants.

Further information is available at the DECC website here

Landmark Chambers is going to run a half day seminar on the Scheme in September. Do you have any ideas for topics to be covered or for speakers?