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CRC: Environment Agency clarifies the deadline for disaggregation of SGUs
Practical Law UK Legal Update 1-502-5090 (Approx. 3 pages)
CRC: Environment Agency clarifies the deadline for disaggregation of SGUs
by PLC Environment
| Published on 15 Jun 2010 • UK |
An update on clarification received from the Environment Agency's CRC Helpdesk on the deadline that applies to the disaggregation of Significant Group Undertakings (SGUs) under the CRC Energy Efficiency Scheme (CRC).
Speedread
The Environment Agency's CRC Helpdesk has clarified how the 30 June 2010 deadline for the disaggregation of Significant Group Undertakings (SGUs) under the CRC Energy Efficiency Scheme (CRC) applies.
Background
Terms that appear in capital letters in this update are defined in Practice note, CRC Energy Efficiency Scheme: PLC glossary and abbreviations.
The CRC Energy Efficiency Scheme (CRC) came into operation on 1 April 2010. The first Phase (also known as the Introductory Phase) runs from 1 April 2010 to 30 March 2013. Organisations that meet the Qualification Criteria must register as Participants in the CRC by 30 September 2010.
For an explanation of what a Significant Group Undertaking (SGU) is and in what circumstances a Group can apply to have one of its SGUs disaggregated under the CRC, see Practice note, CRC Energy Efficiency Scheme: impact on corporate structures: Disaggregation of SGUs.
For an explanation of the registration process, see:
- Environment Agency: CRC: Registering as a CRC Participant (the EA Guidance), where there is a helpful diagram on page 13 of the various steps in the registration process.
The deadline for registration for organisations that wish to apply to disaggregate an SGU in the Introductory Phase is 30 June 2010. The reason for this is because the SGU that is being disaggregated needs to have enough time to register itself as a stand-alone Participant by 30 September 2010.
PLC reported in Legal update, CRC registration so far: commonly made mistakes that the number of registrations so far has been low and that in a newsletter, published on 3 June 2010, the Environment Agency (EA) asked organisations to contact them if they are unable to meet the 30 June deadline.
Clarification by the EA's CRC Helpdesk
In a recent telephone conversation, the EA's CRC Helpdesk confirmed that the Highest Parent Undertaking of a Group that intends to disaggregate an SGU does not need to have completed the entire registration process by 30 June 2010.
According to the CRC Helpdesk, it will be sufficient for the Highest Parent Undertaking to have submitted its registration information by 30 June 2010 (that is, to have reached step E in the diagram on page 13 of the EA Guidance).
Organisations that intend to disaggregate an SGU, but think they will not have completed the entire registration process by 30 June 2010, should still contact the EA to inform them of this fact.