Utility consultancy BIU is demanding that CRC registration fees should be refunded to all participants following last week’s change to the scheme.
In the Spending Review, Chancellor George Osborne decided that any money made from the sale of carbon allowances would go into the government’s coffers instead of being recycled back into the scheme, as originally intended.
This, says BIU, fundamentally changes the rules of engagement for organisations who are in the CRC and those yet to register.
The company said this week: “As the allowances will now no longer be recycled back to the participants, this turns the previously revenue neutral CRC into a carbon tax.
“Consequently, BIU contends that, as an immediate initial step, the £950 registration and £1,290 annual subsistence fees should be refunded and removed, as the new ‘tax’ should cover the administration fees.”
BIU also called for the CRC to be reformed “to enable businesses who have demonstrably suffered from the impact of the recession to be able to withdraw from the financial obligations of fully participating in the scheme”.