CRC: First civil penalties for non-compliance with scheme | Practical Law

CRC: First civil penalties for non-compliance with scheme | Practical Law

The Environment Agency published details, in June 2012, of the first civil penalties imposed for non-compliance with the CRC Energy Efficiency Scheme.

CRC: First civil penalties for non-compliance with scheme

Practical Law UK Legal Update 6-520-1547 (Approx. 2 pages)

CRC: First civil penalties for non-compliance with scheme

by PLC Environment
Published on 03 Jul 2012UK
The Environment Agency published details, in June 2012, of the first civil penalties imposed for non-compliance with the CRC Energy Efficiency Scheme.
In June 2012, the Environment Agency (EA) published details of the first civil penalties imposed on participants in the CRC Energy Efficiency Scheme (CRC) for failure to comply with the deadlines for submitting footprint and annual reports for the 2010/11 compliance year.
The highest penalty was £41,000 (imposed on Saur (UK) Ltd) and the lowest was £10,000 (imposed on Tomkins Ltd). The fines are a compound of a fixed penalty and a daily rate for an ongoing breach. Under article 94 of the CRC Energy Efficiency Scheme Order 2010 (SI 2010/768), the EA has discretion (albeit limited) to waive or modify penalties if a participant can show that it took reasonable steps to comply with the CRC or rectify the failure as soon as it came to the participant's attention. For more information on CRC penalties and how these are calculated, see Practice note, CRC Energy Efficiency Scheme: enforcement and penalties.
The next deadlines under the CRC are as follows:
  • Submit an annual report for the 2011/12 compliance year by 31 July 2012.
  • Surrender sufficient allowances for the 2011/12 compliance year by 28 September 2012. Although the deadline specified in the CRC Order is 31 July 2012, the EA has said in a Regulatory Position Statement that participants will be treated as compliant if they surrender allowances by 28 September 2012 (see Legal update, CRC: regulations on sale of allowances come into force).
For more information on the CRC in general, see CRC Survival Kit.