CRC could herald channel margin squeeze

Datacentres providers could pass extra costs down to the channel after green scheme begins in April

Pass: datacentres may pass the extra cost down the chain

Datacentre resellers could face a margin squeeze when the Carbon Reduction Co­mmitment (CRC) Energy Efficiency Scheme becomes law in April.

The CRC will require firms to buy allowances for annual carbon emissions. Charges will be capped at £12 per tonne of CO2. The government predicts the legislation could affect 20,000 UK firms.

The most profligate will be named and shamed in an energy-efficiency league table and non-compliance will incur stiff penalties.

Datacentre providers are certain to be affected. UK­Solutions runs two datacentres and provides hosted services through a partner channel. Managing director Daniel Lowe claimed the CRC “represents a two to three per cent additional tax” on his firm.

He added that contracts between UKSolutions and its partners contain caveats covering the additional cost, but agreements with end users were “extremely unlikely” to feature similar clauses. “Datacentres will pass the tax down the chain,” he said.

Lowe claimed the legislation was wrong to target firms based purely on volume. “It needs to review how efficient they are,” he said.

Onyx Group operates four UK datacentres and chief executive Neil Stephenson claimed he was unconcerned by the CRC and added that end users’ increased environmental awareness could even benefit the IT channel.

“Every change is an opportunity,” he said. “[Energy efficiency] and how you perform against your peers is now high up the list of criteria; a lot of our customers are asking about it.”