Many UK firms remain unprepared for the introduction of a UK cap-and-trade scheme, and have little experience of the IT systems and trading processes that will be required to comply with the new legislation.

The Carbon Reduction Commitment (CRC) cap-and-trade scheme was originally expected to impact around 5,000 companies and organisations with annual electricity bills in excess of £500,000, including supermarkets, hotels, government departments and universities.

However, last week the Department for Environment, Food and Rural Affairs (Defra) wrote to 10,000 organisations, all of which could ultimately be included in the scheme, to ask them to register. "The scheme covers so many organisations and so many different structures we simply don't know who they all are," said a Defra spokesman. "Out of good faith we are doing our best to ensure all organisations are aware of what is happening before the regulations comes into effect."

Under the rules of the CRC, organisations should have carbon and energy reporting processes in place by 2010, but they will only be punished for non-compliance from April 2013. The three years in-between are to allow organisations to prepare their processes for carbon data collection.

However, Richard Kellett, head of solutions and technology marketing at business intelligence and reporting software firm SAS, said organisations need to start applying the technologies needed for compliance with the scheme now, to be properly prepared for 2013.

"Many organisations have traditionally responded to the pressures of [new legislation] by rushing around to collect data, planning around what they collect, developing the key performance indicators from those plans and then reporting the results back to the world," said Kellet. "This type of approach is extremely short sighted, and puts you in a constant game of catch up."

He added that unlike the energy firms affected by the original European Emissions Trading Scheme, many of the organisations included in the CRC had little experience of carbon reporting and commodity trading systems and as such were particularly ill-prepared for the legislation. He warned that organisations such as supermarkets, hotels and universities would have to train IT and accountancy staff in new reporting rules and processes, as well as carbon trading principles.

Kellet advised organisations likely to be included in the CRC to establish the required energy and carbon reporting processes before the cap-and-trade scheme takes effect, adding that such an approach would also allow them to analyse the data earlier and identify areas where they can begin to curb energy use.

Critics could argue that as a provider of business reporting software, SAS has much to gain from promoting the adoption of new energy and carbon reporting systems.

But Jes Seymour at consultancy IT Insight agreed many firms would require new IT systems to handle the data they will be expected to report on under the CRC. "IT departments have a tendency to trip over when they do things in a rush," she added. "Although it may seem a simple requirement, the devil is in the detail. The scheme may mean changes to older systems and significant overhauls. "

However, Craig Bennett of the Corporate Leaders Group on Climate Change, warned that even those firms that implement systems for tracking their energy use and trading the new carbon credits that result from the scheme will find full compliance with the scheme a challenge, arguing that the government had not yet done enough to provide firms with information on how best to prepare. "Companies will have to come up with the best practice themselves," he warned. "The moment the government puts standards in place, it will be a whole lot easier."