Civil penalties totalling £99,000 for non compliance with
the CRC Energy Efficiency Scheme (the "CRC") have been
announced. The penalties were levied on 4 companies which are
participants in the CRC. These companies failed to provide
prescribed reports on time. The highest penalty was £41,000
and the lowest was £10,000.
The CRC Energy Efficiency Scheme Order 2010 (the
"Order") provides the administrators of the CRC (the
Environment Agency, SEPA and NIEA respectively) the ability to
apply penalties for non compliance with the scheme. Under the first
year (2010 to 2011) of phase one of the CRC participants were
obliged to provide a footprint report and an annual report no later
than the end of July after the end of the reporting year. For the
second year (2011 to 2012) an annual report only is required.
There are separate penalties for failure to provide either
A fixed payment of £5,000 and publication of the
Where the report is provided less than 40 days after the due
date, a penalty of £500 can be levied for each working day
the report is late. After 40 days a financial penalty of
£40,000 may be applied;
In respect of annual reports only, where the report is provided
more than 40 days after the due date (or not at all), further
penalties may be levied including doubling of CRC emissions
(thereby increasing allowances required to be purchased).
These first Penalties
The highest penalty was £41,000 and comprised a penalty of
£20,500 for the two late reports. The lowest penalty was
£10,000, being £5,000 for each late report.
The Order provides the administrators with discretion to waive
or modify a civil penalty. This includes when the offender took all
reasonable steps to comply, or to rectify the failure as soon as it
came to its notice. In 2 of the 4 reported cases discretion was
exercised resulting in a reduction of the penalty imposed.
The penalties applied indicate that non compliance with the CRC
will be taken seriously particularly where there is little attempt
by the offender to rectify the non compliance. It is also a stark
reminder of the requirement to submit annual reports by 31 July
2012 for the reporting year 2011/12 and to surrender adequate
allowances this year. The regulatory enforcement position is that
participants shall be treated as compliant with their 2011/12
surrender obligation providing the Environment Agency receives a
valid order for sufficient allowances including payment of cleared
funds by 31 July 2012 and sufficient allowances are surrendered by
28 September 2012.
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The Scotland Act 2012, amongst other things, devolved to the Scottish Parliament powers to determine the tax regime for disposals to landfill.
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