Orchard Energy issues CRC warning
May 11 2010 by Henryk Zientek, Huddersfield Daily Examiner
KIRKLEES firms face fines of up to £45,000 if they fail to comply with a new energy scheme, an expert has warned.
Gareth Henderson, managing director of Brighouse-based Orchard Energy, said companies should be prepared for the new CRC Energy Efficiency Scheme – the UK’s mandatory climate change and energy saving scheme.
The scheme, formerly known as the Carbon Reduction Commitment, requires all non-transport UK organisations – from half-hourly meter point users to firms using more than 6GW of half-hourly electricity a year – to register and comply.
The government believes 5,000 of the UK’s largest organisations will be affected.
Mr Henderson, who is also a founder member of industry regulatory body the Utility Intermediary Association, said: “Although the CRC will be revenue neutral to government, it provides an incentive to reduce CO2 emissions by distributing some of the revenue from the worst to the best performers.
“The regulations are complex and there are significant penalties for non-compliance.”
Said Mr Henderson: ““The implications of CRC registration and compliance for organisations are numerous, including significant financial burdens such as up to a 30% increase in energy costs, by 2015, for those with poor, relative performance and penalties for non-compliance.
“Some major organisations are oblivious to CRC. One area in particular which could be seriously overlooked, is where the obligation falls on parent organisations, not entities or sites.
“Therefore, private equity funds could be responsible for emissions from their portfolio.”
Orchard Energy has drawn on its expertise dealing with complex issues with organisations such as trade associations and the Environment Agency to devise three flexible packages providing varying levels of compliance management for firms facing the CRC.
“It is our responsibility to guide our clients through the process and we are visiting each client to raise awareness of their obligations and options,” said Mr Henderson.