On 15 June 2010 the Environment Agency (the "Agency"), as the administrator of the Carbon Reduction Commitment Energy Efficiency Scheme ("CRCEES"), issued long awaited guidance on the application of the CRCEES to private equity funds (the "Guidance"). In particular the Guidance covers which entities might form a group for the purposes of the CRCEES and how the concept of significant group undertakings ("SGUs") will apply to private equity funds.

It is essential reading for those advising in respect of the CRCEES in the private equity context. We recommend a prompt review to check that the Guidance accords with the approach adopted by organisations in implementing the scheme.

The Agency has also recognised that there are a number of organisations encountering difficulties in making their initial registration by the 30th June deadline for disaggregation. The Agency's new position is that those organisations should send an e-mail with "CRC Intent to Disaggregate" in the subject line to CRCHELP@environment-agency.gov.uk confirming an intention to register and disaggregate as soon as possible. The Agency is willing to extend the initial registration window for those wishing to disaggregate until the 31st July 2010.  For those unsure as to whether they shall disaggregate, consideration should be given the sending an email reserving their position to gain the benefit of the 31 July extension.

A link to the Guidance is here.

A link to the Agency's position on disaggregation is here.

For a summary of the Guidance please click here.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 01/08/2010.