Primecover News 10th September 2010

Organisations are being urged to register without delay with the Environment Agency (EA), for the Carbon Reduction Commitment Energy Efficiency Scheme (CRC), or else face financial penalties and possible damage to their reputation, by the 30th September 2010.

For landlords required to meet the requirements of the CRC (those using 6000 MWh of electricity on half-hourly meters, which is equivalent to approximately 500,000 p.a spend, in 2008), they must register with the EA and insert additional clauses within their lease documents to allow them to recover the costs associated with CRC from the tenant.

Despite extensive publicity about the requirements under CRC, many Landlords are still operating under the assumption that they can simply pass on the costs via the service charge. In addition to the financial cost of the non-compliance Landlords who perform poorly under the CRC can expect a negative impact on their reputation, as they will appear lower down in the CRC’s annual naming and shaming league.

The British Property Federation has long recommended the use of the new provisions within the existing lease structure to not only allow recovery but also to encourage lower energy use by the Tenant and thus improve the Landlords position in the annual league table.

Article published on: 10/09/2010

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