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CRC: Environment Agency publishes guidance on 2012 sale of allowances
Practical Law UK Legal Update 5-518-9555 (Approx. 4 pages)
CRC: Environment Agency publishes guidance on 2012 sale of allowances
by PLC Environment
| Published on 17 Apr 2012 • UK |
The Environment Agency (EA) has published guidance on the 2012 sale and surrender of allowances under the CRC Energy Efficiency Scheme (CRC) in response to the Draft CRC Energy Efficiency Scheme (Allocation of Allowances for Payment) Regulations 2012 that were laid before Parliament on 26 March 2012.
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The Environment Agency (EA) published a 13 page guidance note, in April 2012, on the process for ordering and paying for allowances under the CRC Energy Efficiency Scheme (CRC) in the first fixed price sale which will be held during June and July 2012. The guidance was published in response to the Draft CRC Energy Efficiency Scheme (Allocation of Allowances for Payment) Regulations 2012 that were published in January 2012.
Three presentations showing screenshots of the CRC Registry showing how to order, surrender and trade allowances were also published by the EA on 17 April 2012.
In April 2012, the Environment Agency (EA) published a 13 page guidance note, CRC Energy Efficiency Scheme: CRC 2012 Sale, Allocation and Surrender of Allowances, on the process for ordering and paying for allowances under the CRC Energy Efficiency Scheme (CRC) in the first fixed price sale which will be held during June and July 2012.
The guidance was published in response to the Draft CRC Energy Efficiency Scheme (Allocation of Allowances for Payment) Regulations 2012 that were published in January 2012 (see Legal update, CRC: government lays draft regulations on sale of allowances before Parliament).
Regarding allowances, the guidance advises CRC participants to:
- Appoint and enrol compliance account representatives. These are the individuals undertaking allowance transactions on the CRC registry for the participant. It can take a few weeks to buy digital certificates and for the EA to validate individuals, so the guidance recommends this is done now.
- Submit orders for allowances equal to the participant's CRC emissions for the 2011/12 compliance year via the CRC registry. Orders should be submitted within the 2012 sale window (also known as the primary allocation period) of 1 June 2012 to 31 July 2012.
- Make a payment for the allowances ordered, so that the Department of Energy and Climate Change (DECC) receives cleared funds by 31 July 2012. The guidance says that any payments received after the deadline of 31 July 2012 will be invalid and will be refunded. This will result in the participant not having sufficient allowances to surrender and risking enforcement action including civil penalties.
- Surrender allowances equal to the participant's CRC emissions for the energy supplies in its 2011/12 Annual report due to be submitted in July 2012. Although the surrender deadline specified in the CRC Energy Efficiency Scheme Order 2010 (SI 2010/768) is 31 July 2012, this requirement is subject to a Regulatory Position Statement that participants will be treated as compliant with their surrender obligation if they surrender allowances before 28 September 2012.
The guidance says that the EA has decided not to charge an administration fee for the 2012 sale, that it will review this after the 2012 sale and consult before any future fee is levied.
Three presentations showing screenshots of the CRC Registry showing how to order, surrender and trade allowances were also published by the EA on 17 April 2012.
The guidance says that some frequently asked questions about allowances will be published in due course.
For more information on:
- The sale of allowances, see Practice note, CRC Energy Efficiency Scheme: overview, Sale of allowances.
- The CRC in general, see CRC Survival Kit.
Sources: