CRC will be a ticking time bomb for some, warns Deritend 16 August 2010

Many industrial companies are burying their heads in the sand when it comes to the realities of the impending CRC (Carbon Reduction Commitment) energy Efficiency Scheme.

So says Stuart Hutchinson, sales and marketing manager of low carbon engineering maintenance firm Deritend Industries, warning that, with the registration deadline now so close, plant managers are "taking it down to the wire".

"Our industry is inherently energy-heavy," says Hutchinson, "and the majority of large manufacturing and engineering companies use far more energy than the 6,000 MWh limit set by CRC. Yet we are seeing a distinct lack of motivation, and indeed a lack of understanding from many of these firms to prepare for the reality of CRC."

His concern: "Unless they do something quickly they risk not only a fine for failing to register in time, but significantly larger sanctions further down the line as well."

While the Environment Agency is keen to emphasise that the CRC scheme is not designed to prosecute companies, it does have the power to impose considerable fines for eligible companies that do not meet the registration deadline of 30 September – firstly with a fixed fine of £5,000, followed by £500 per working day until the company has registered, for a maximum of 80 working days.

Hutchinson claims that, in response to the low registration figures to date, Deritend has recently expanded its services to provide consultancy and support specifically on energy efficiency and low carbon technologies, spearheaded by the launch of its website lowcarbonservice.co.uk.

"Compliance with CRC aside, most business leaders acknowledge the benefits that greater energy efficiency can provide, and are striving to achieve this 'greener' way of working," insists Hutchinson. "But for businesses in traditionally 'dirty' sectors like manufacturing and engineering, it is often easier said than done.

"With efficiency fast becoming the industry buzz word and with the CRC registration looming, companies need to face up to the carbon reduction challenge once and for all," says Hutchinson.

Brian Tinham

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Deritend Group

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