On 17 December 2009, a working party representing the interests of the property industry (which includes a representative from PLC) issued a consultation document seeking the industry's views on how the costs of complying with the CRC Energy Efficiency Scheme (CRC) should be apportioned between landlords and tenants. For more information on this consultation, see Legal update, Property industry consultation on how to apportion CRC costs between landlords and tenants.

The consultation closed on 5 February 2010. Responses to the consultation have revealed a number of divergent views amongst members of the property industry as to how the costs of the CRC should be shared between landlords and tenants. A report analysing these responses, and considering possible options for landlords and tenants, is expected to be issued in June.

In the meantime, for some suggested wording for clauses regarding the CRC that could be included in leases, see PLC Property, Standard clauses, Consultation draft CRC clauses for insertion into standard form leases.

The PLC draft clauses include detailed explanatory notes, which highlight the issues and the purpose of the clauses. The draft clauses are intentionally very simple, and as a result, cannot and do not address all of the many complexities to which the CRC may give rise in a landlord/tenant relationship.

These complexities are explained in detail in a guide published by the British Property Federation (BPF) in June 2009 (see Legal update, BPF publishes guidance on the Carbon Reduction Commitment). An updated version of this guide is expected to be available within the next few weeks. To view the current version of this guide, see The Carbon Reduction Commitment: A guide for landlords and tenants.

The consultation draft of the CRC additions to the CPSEs was published by PLC in November 2009. For the current draft, see PLC Property, Article, What pre-contract enquiries should be made about CRC issues? An updated consultation version will be published next week with a view to formal adoption as part of the CPSE suite shortly thereafter.

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