CSR STOKES CRC ENERGY EFFICIENCY SCHEME FIRE

Property Management News

Whilst the recent Comprehensive Spending Review (CSR) undertaken by the new coalition Government signalled good news for Nottingham with confirmation that Phase 2 of the tram extension would go ahead, for large businesses and property holders it was potentially bad news with the announcement that the CRC Energy Efficiency scheme was to be simplified.

The original scheme was introduced several years ago and due to start next year, with the main focus on reducing Carbon emissions from UK property. Property owners that have electricity supplied by a half hourly meter or an equivalent spend of approximately £500,000 of electricity per year have to register onto the scheme. The later would then have to contribute to a fund via purchasing credits to offset against emissions. Those that cut their energy consumption the most would however benefit from money being returned to them from the self financing fund, whilst poor performers would not receive anything.

This has apparently been ‘simplified’ with the revenue generated now going to the public purse rather than being recycled to participants. To ease the burden the scheme has however been pushed back to 2012.

David Powell, Associate Partner within the Property Management Department of Fisher Hargreaves Proctor, described the changes as;

“Not so much as moving the goalposts but changing the rules part way through the game. Business and property owners have been planning for the CRC Energy Efficiency scheme since its introduction, and good performers were to be rewarded. It has now become a stealth green tax with all participants having to introduce energy efficiency measures quickly in order not to be penalised. This could also have a further impact upon tenant occupational costs as they are generally responsible for utility charges under the lease terms.”

More announcements are due to be made shortly to clarify the finer details, but with estimates of £1 billion a year being raised from the scheme, the changes have placed more burden upon businesses at a time when many are just looking to survive.

For more information on how FHP could assist you please do not hesitate to contact one of the Property Management team.