Environment Agency accused of undermining CRC with dodgy data

The Environment Agency has this week written to organisations covered by the Carbon Reduction Commitment (CRC) legislation urging them to register for the scheme now, even if that means providing incomplete or inaccurate data.

The move prompted accusations that the watchdog was undermining the credibility of the energy efficiency scheme by inviting businesses and public sector bodies to provide flawed data on their energy use and carbon footprint.

In an email to large organisations seen by BusinessGreen.com, the agency advises firms covered by the CRC to "not delay registration even if your information is not fully accurate".

"We urge all organisations to register as soon as possible before 30 September," the email states. "We will work with you to resolve any errors in the information you supply. This will not affect your compliance."

The Environment Agency is under pressure to increase the rate of registration for the scheme after figures released this week revealed that only about a third of those firms covered by the legislation have lodged official registration documents with the watchdog, despite the fact there are fewer than 50 days to go until the deadline for registration.

A flurry of registrations is expected over the next month, but some experts remain fearful that large numbers of businesses and public sector organisations will miss the deadline and could be subjected to fines.

The Environment Agency is keen to avoid dishing out fines and as a result is offering to analyse inaccurate or incomplete registration documents and work with participants in the CRC to correct them.

However, this act of leniency has prompted criticism from some quarters, with energy industry analyst Inenco accusing the Environment Agency of undermining the primary aim of the CRC legislation.

Rebecca Seabury, Inenco analyst, said: "Although we welcome the offering of support from the Environment Agency, the move appears to encourage nothing more than rudimentary compliance with the legislation, which contrasts with the central aim of the scheme, to promote proactive management of energy consumption and carbon emissions."

She added that lodging inaccurate data at the start of the scheme would make it far harder for participating organisations to deliver verifiable cuts in energy use further down the line.

"If organisations are unable to obtain accurate data on their energy usage at this stage, it's going to be difficult for them to track their efficiency and make reductions in the future and unlikely that they will benefit from the CRC league table," she said.

A spokeswoman for the Environment Agency rejected the suggestion that it was inviting organisations to deliberately provide inaccurate or incomplete data.

"It is in the interest of companies to be as accurate in their assessment as possible but we have always made it clear that at this stage of the process there is flexibility around in the information that needs to be provided," she said. "We will work closely with businesses to aid their registration and encourage organisations to submit the most accurate information they have."