Thousands will miss CRC deadline, warns WSP

Analysis by WSP Environment & Energy suggests that up to 7,500 businesses risk missing the 30 September deadline for registering or making an information declaration under the terms of the new UK carbon reduction commitment energy efficiency scheme (CRC).

Under the scheme, more than 20,000 organisations must provide information to the Environment Agency by 30 September this year. Of these, about 5,000 must complete full registration, in preparation for ongoing participation in the CRC. Approximately a further 15,000 lower energy users must make an information declaration in order to demonstrate their ineligibility.

As of 19 July, information published by the Agency showed that just 848 organisations have registered as CRC participants, up from 264 at the beginning of June. Meanwhile, the number of information declarers has risen over the same period from 2,314 to just 3,385 .

David Symons, director at WSP Environment & Energy, argues that many organisations run a real risk of missing the 30 September deadline: “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."

Earlier this year, the Agency's CRC manager, Andrew Hitchings, told Environment Analyst that many last-minute registrations are expected and that the rate of registration at this point in the process should not be viewed as a sign that widespread failure to register in time is likely to occur. In many cases, future CRC participants are taking their time to register because they are seeking legal advice on the best way to structure their legal entity under the terms of the scheme, said Hitchings. He added that many registrations are also likely to occur close to the deadline because registrants must pay out and it is natural for there to be a reluctance to pay until required. Hitchings contends that awareness of the CRC amongst target organisations is high (Environment Analyst 03-Jun-10).

WSP will update its predictions as the Agency provides further news on CRC registrations.

• WSP Environment & Energy news release