Isramart: Bosses warned of penalties under carbon scheme

Isramart news:
SOUTH West boardroom directors could face criminal charges if they fail to meet new rules on carbon reduction, a property energy specialist has warned.

Steve Puddicombe at property consultants King Sturge said many businesses were still unaware of the Carbon Reduction Commitment scheme, which took effect on April 1.

“The new rules make strict demands on any business using more than 6 million kWh — amounting to an annual energy bill of about £500,000,” he said. “This can have direct impact on landlords owning commercial properties with multiple tenants, and many of this region’s large employers.

“Like so many recently introduced new regulations, this has received very little publicity — but that does not shield boardrooms from the penalties of non-compliance.”

Any company failing to register its energy use by the required deadline of September 30 this year faces a fine of £5,000, plus an additional £500 a day until it is successfully registered on the new scheme.

“Non-compliance with the annual reporting scheme will be treated as a civil offence, but a failure to respond to subsequent demands will be viewed as a criminal offence,” Mr Puddicombe said. “My worry is that many large property owners and businesses will be unaware of this new legal requirement. Fines for non-compliance are punitive.”

Having identified their total annual CO2 emissions, participating organisations will have to buy carbon allowances at a fixed price of £12 a tonne during the first three years.