...Companies lose potential benefits in which they have invested thousands of pounds…

John Field, Director of Carbon Management at Power Efficiency stated; "The changes to the CRC Scheme represent an un-signalled U-turn on existing regulations. Companies have invested in actions with enhanced cash benefits that have now disappeared overnight. Examples are accreditation for the Carbon Trust Standard, typically costing £15,000, and installing Automatic Meter Reading which both provided enhanced rates of return under the CRC Scheme. While these actions remain positive and cost effective, it is unfair to companies that the enhanced benefit under the CRC regulations has been lost."

"The CRC Scheme has become a green tax at 5-10% on companies’ annual energy costs. This will increase the pressure on companies to manage their energy use and carbon emissions downwards. Companies’ budgeting is also

affected: instead of planning for a six-month cash-flow, it is now an annual payment."

In addition, the removal of the recycling payments portion of the CRC Energy Efficiency Scheme turns it into a tax on businesses and, as such, participants will need to seriously consider how those costs are passed on to their customers.

Field concluded, "For landlords the allowances costs must now be chargeable to tenants and it is essential that the administration of this is properly planned and incorporated with energy costs into service charge mechanisms."

Power Efficiency, the energy procurement and carbon strategy consultancy, has today issued its assessment of the changes to the CRC Energy Efficiency Scheme that will be imposed as a result of the Coalition Government’s 2010 Comprehensive Spending Review announced last week, branding them "an unfair u-turn that has turned the scheme into a green tax and removed benefits many businesses will have invested in at a time of hardship."