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The Crc Energy Efficiency Scheme And How It Will Affect Landlords
The scheme is targeted at companies and organisations whose electricity bills exceed £500,000 or use more than 6,000 half-hourly metered megawatt hours. Participants in the scheme will include large hotel chains, hospitals, schools, universities, local authorities and Government departments. All of participant’s performance will be assessed by The Environment Agency and ranked in a league system along with financial incentives to drive competition. It is estimated that the scheme will save up to 40 million tonnes of CO2 emissions and begin to save businesses and organisations up to £1 billion from 2020. In properties that are rented, the scheme states that it is the responsibility of whoever is in charge of the energy supply that must comply with CRC regulations. If it is a landlord or facilities management company that provides a tenant with energy like in most multi-tenanted buildings then the responsibility falls with the landlord to comply. The thinking behind placing responsibility on landlords is that they have influence over tenant’s energy usage making it a simple way to manage the CRC. There is no way for the landlord t transfer the responsibility onto their tenant but can negotiate where responsibilities will lie and landlords must consider if businesses will cover administration costs for the CRC. Landlords should consider whether they incentivise companies to increase their energy efficiency and reduce carbon emissions by providing bonuses from any returns from the CRC or invest in energy efficient improvements to their building. They should also consider how to payments for green services such as recycling should be allocated across their tenants. These are just some initial things that need to be considered and landlords need to review the full CRC regulations as there are a lot of decisions to be made. If CRC regulations are not complied with then there will be penalties beginning ‘light touch’ regulation but leading onto civil and even criminal penalties. Civil penalties can range from fixed and variable fines to the blocking of trading accounts and failure to register by the assigned date will incur a substantial fine, not to mention a low ranking in the performance league. Article Directory: http://www.articledashboard.com Green information and advice from double glazing specialist: Safestyle UK. |
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