The CRC starts on 1 April 2010 and will be administered by the Environment Agency, who is responsible for managing an online registry and the sale of carbon allowances.

The CRC targets emissions not already covered by Climate Change Agreements1 or the EU Emissions Trading System and will affect mainly large private and public sector organisations. You qualify for inclusion in the scheme if your electricity supply is through half hourly meters and exceeds a threshold of 6,000MWh. If your half hourly metered electricity supply is below 6,000MWh, it is likely you will have to make an information disclosure about your electricity supply. Sole traders and other small emitters are excluded from the CRC, but if your landlord is involved in the CRC then it is likely that the costs will be passed on to you as the tenant.

The CRC will cover both electricity use and direct emissions from energy use. If your business falls within the CRC, you will have to:

• Register as a participant in the scheme or provide details of your energy use online by 30 September 2010.
• Measure, record and submit your business' energy use and calculate your CO2 emissions annually.
• Trade in emissions allowances.

The Environment Agency is writing to all UK organisations they believe have an obligation under the CRC. If you receive a letter from the Environment Agency you will need to take action. The letter will explain what you need to do next. For further information there are guidance papers which can be downloaded from the Environment Agency website.

Penalties & Implications of non-compliance:

Non compliance with the CRC can incur a fine and other penalties.
In addition, the Environment Agency will publish details of all organisations that have not complied with the CRC and will produce a league table each year showing best and worst performers.

Further Information:

DECC: http://www.decc.gov.uk
Environment Agency: http://www.environment-agency.gov.uk
NetRegs: http://www.netregs.gov.uk