Terms that appear in capital letters in this Ask the team are defined in Practice note, CRC Energy Efficiency Scheme: PLC glossary and abbreviations.

My company is one of a number of UK subsidiaries that are all owned by an overseas parent company. When our Group registers for the CRC Energy Efficiency Scheme (CRC), do we need to supply details of both a UK parent and the ultimate overseas parent company to the Environment Agency (EA)?

As all the UK subsidiaries in my Group do not have a common UK parent company, only a common overseas parent, I am not sure what details to put in the fields relating to organisation details when registering for the CRC.

Article 24 of the CRC Energy Efficiency Scheme Order 2010 (SI 2010/768) (the CRC Order) provides that where a Group of Undertakings is required to participate in the CRC, the Group must apply for registration.

Article 73 provides that, where a Group has a Highest Parent Undertaking (HPU) that is based outside the UK, the overseas HPU must nominate one of its UK Group members (or a third party agent based in the UK) to act as the Account Holder. Note that the CRC Order refers to Account Holder but the Environment Agency's guidance refers to Primary Member. We take the view that Primary Member (which is a concept that appears in earlier drafts of the consultation documents, guidance and the draft of the CRC Order published in March 2009) is the same concept as Account Holder. We think that the difference in terminology between the CRC Order and the various guidance documents is a result of the significant number of changes that were made to the draft CRC Order that, amongst other things, rationalised the amount of defined terms.

Paragraphs 2 and 3 of Schedule 5 to the Order set out the information that is required about the Group when registering. Paragraph 3(a) provides that the details set out in paragraph 2 will be required in respect of the HPU of the Group and in respect of each Significant Group Undertaking (SGU). Paragraph 3(b) provides that, where an Undertaking other than the HPU is to be the Account Holder for the Group, the details in paragraph 2 must be provided in respect of that Undertaking. The CRC Order does not appear to require information about a Parent Undertaking in the UK to be provided as part of the registration.

The Environment Agency Guidance: Registering as a CRC Participant (the Registration Guidance) appears to take a different approach from the CRC Order. On page 23, the Registration Guidance requires details of the highest UK parent body. On page 25, the Guidance provides that the registration process will require you to say whether the organisation that is registering is the subsidiary of an overseas parent and then (if the answer is yes) to provide details of that overseas parent's name and registered address or headquarters. Page 39 appears to confirm that both information about a UK parent body and also any overseas parent is required, as it says "The screen (see below) will show you the UK parent organisation whose details you have already entered and any overseas parent whose name you have provided…".

The Guidance seems to be working on the basis that the normal corporate structure will be one where there will be a highest UK parent body and that there may be some Groups where that UK parent body is itself controlled by an overseas parent. It does not, therefore, seem to deal with the situation where there is no UK parent company and a number of UK subsidiaries are owned directly by an oversees parent.

You have asked what Group member's details you should put in the fields relating to organisation details when submitting your application for registration through the online CRC Registry. Should the details of the overseas HPU be entered into the fields of the CRC Registry that relate to the highest UK parent or should it be the details of the UK Group member that has been selected as the Account Holder for the Group?

The Environment Agency’s CRC Helpdesk has responded to PLC’s query on this point. Their response, appears to confirm our view that the details of the UK Subsidiary Undertaking that has been nominated as the Account Holder for the Group should be included in the fields that require information about the highest UK parent.

For more information on registration and the CRC in general, see:

If you have any comments on this, or any other, Ask the team, please e-mail the PLC Environment team at [email protected].