Firms face fines for failing to comply with environmental law

Companies have less than three weeks to prepare for the Government's new Carbon Reduction Commitment (CRC).

From April 1, organisations with annual electricity bills of about 1m or more must start measuring and reporting their energy use to government auditors.

Professional services firm KPMG estimates that several hundred organisations in Yorkshire will be required to participate. Those that submit late or inaccurate data could be penalised.

From April 2011, the Government will publish league tables ranking participants on their success at managing and reducing their carbon emissions. This will inform a bonus and penalty system which sees money from the worst performers given to those nearer the top, to reward their performance.

Ben Wielgus of KPMG's Sustainability Group, said: "There are still signs, even at this late stage, that many of the scheme's participants are not yet fully prepared for the CRC.

"Some are hopeful of a last-minute postponement of the scheme, thinking this is signalled by the delays in clarifying some of the more complex areas of the scheme.

"However, we believe the scheme is going to start in April and all organisations should be prepared by now.

"The penalties for late or inaccurate data submission mean organisations could find themselves incurring unexpected costs, and their efforts to establish green credentials could be severely

set back.

"Furthermore, many organisations don't fully understand the implications of the CRC league table's early action bonuses so may miss out on this form of potential return on investment."