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Recent penalties totalling £99,000 levied for
non-compliance with the CRC Energy Efficiency Scheme serve to
demonstrate and remind companies of the seriousness with which
failure to comply will be taken believes Jennifer Chappell, senior
associate at Bircham Dyson Bell LLP.
Failure to provide a 'footprint report' and an annual
report by last year's July 29 deadline and reports submitted
more than 40 working days late have allowed the Environment Agency
to hand out seemingly large fines. Henkel, the company which makes
Schwarzkopf hair products and Pritt Stick, was allegedly fined
£38,000 for breach of reporting provisions in the CRC Energy
Efficiency Scheme Order 2010.
"The legislation took effect back in 2010 when companies
with yearly electricity bills of more than £500,000 had to
sign up to this mandatory emissions trading scheme, and it seems
some of them have fallen at the first hurdle in terms of making
sure their reports are submitted on time," explains Jennifer
Chappell.
"More than anything, it's a reminder to companies of
the requirement to submit this year's reports on time, even
though the government are in the process of making big changes to
CRC. The scheme isn't popular and may replaced by an
environmental tax, but the principle of companies'
reducing their carbon footprints remains live and relevant. A
clear signal has been given as to the seriousness of
non-compliance."
In the Budget 2012, the Government announced it would consult on
how to simplify the CRC to reduce the current administrative
burdens placed on organisations. If it is not possible to achieve
significant cuts in the administrative burdens, the Government will
bring forward proposals in Autumn 2012 to replace the CRC with an
alternative environmental tax.
"Whatever happens, the greenest-government ever means
business and CRC won't be scrapped!" concludes
Chappell.
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