CRC - BPF consultation on drafting

The outcome of the latest BPF consultation on drafting issues for landlords and tenants (which concluded on 5 February) is still eagerly awaited. Latest reports are that those working on a report on the consultation process are intending to produce a report by mid-June. CRC has, of course, been in force since 1 April 2010, although the need to purchase CRC allowances does not arise until April 2011. It is not expected that the report will offer standard CRC clauses to be included in all appropriate commercial leases, as was the initial intention. Rather, it is anticipated that the working party will report on a range of divergent views expressed as to how CRC is to be dealt with, and will suggest a range of different options for dealing with CRC in the lease. A consensus approach to drafting is most unlikely to be achieved. It will therefore remain a key point for lawyers to address with with letting agents at or before heads of terms stage: how is CRC to be dealt with in relation to this building?