The Governments proposals to meet their emission targets under the Kyoto Protocol has resulted in the Carbon Reduction Commitment (CRC).
Basically, any organisation (private or public) whose electricity consumption across all of their buildings nationwide is greater than £500,000 per annum must record and monitor their CO2 emissions and buy “allowances” equivalent to their emissions. The “allowances” will initially cost £12 per tonne of CO2 and will enable the organisation to purchase the electricity (and other energy supplies) they need for their future use.
How will this affect you? One example is where you are the tenant of a building owned by a large organisation. If they are a part of the scheme then you are likely to see an increase in the cost of any energy supplied to you from the organisation. The landlord will of course want to recover any additional costs to which it is exposed to comply with the CRC and that inevitably will be passed on to it’s tenants. In fact we are already seeing CRC clauses in leases to protect the landlords position.
If you require any further information about this article please do not hesitate to contact Mathew Haynes on 0113 2450733.
