CRC scheme: Penny has yet to drop

The scheme offers significant payback for companies at the top of its performance league table, through financial rewards, energy savings, brand value and enhanced market standing.

However, with the September registration deadline - and fines - looming, the Environment Agency has reported that fewer than 10% of companies have signed up to the scheme. This is being linked to a widespread confusion about the scheme, while it is also believed that many companies are genuinely struggling to get to grips with its requirements.

These include getting a management team and systems in place to drive a CRC agenda, rather than leaving it all, for example, to an individual with responsibility for energy management.

Another stumbling block is lack of knowledge among companies about their own energy consumption and emissions. Without detailed and up-to-date data in these areas, companies will be unable to perform successfully within the scheme.

So it seems that those suppliers expecting a rush to buy energy-saving equipment, such as variable speed drives, are likely to be disappointed - at least until many more process operators get their CRC houses in order.

But, this may happen sooner than many expect, the economic downturn not withstanding. Companies have to start reporting under the scheme from April 2010, and to purchase and submit sufficient allowances to meet their annual emissions covered by the scheme.

Moreover, when competitors start to appear much further up the CRC league tables, which are due to be published in October 2011, the new reality is likely to set in.