Climate Change Agreements Extended

by | Jun 16, 2020

New opportunity announced by UK government to make significant savings on energy bills

Climate Change Agreements have been extended by thegovernment to 2025

In the the spring 2020 budget it was announced that the Climate Change Agreement (CCA) scheme would be extended for a further two years until 31st March 2025. At the same time it was announced that the scheme would be re-opened to new joiners for a limited period.

The window of opportunity for new joiners will only last until the end of September 2020, so you only have a few months to take advantage of the discounts on offer.

High energy users such as manufacturers, storage and logistics companies,launderers and textile producers, data centres, food and drink industry organisations and others are eligible to make sizeable savings on their energy bills by signing up to a Climate Change Agreement (CCA) with the UK government’s Environment Agency.

How much could you save?

If your process is electricity-intensive, gas-intensive, LPG-intensive or all three, you can gain savings as outlined below:

High intensity electricity users could save:

For 1,000,000 kWh annual electricity consumption savings would be

  • £7,461 per year

High intensity gas users could save:

For 1,000,000 kWh annual gas consumption

  • £4,060 per year

If you use electricity AND gas (or LPG or any other taxable fuel) you can be awarded the CCL discount across all fuels attracting the levy, potentially doubling or tripling your savings.

Can my company get a CCA?

You’re eligible for a CCA if you undertake a ‘Part A’ process covered by the ‘Environmental Permitting Regulations’, or, your sector or industrial process has been deemed to be ‘energy intensive’ by the UK Government.

The Environment Agency has produced a summary of processes within each sector that are eligible for CCA here.

How can Smarter Business get me a CCA and how much will it cost?

Smarter Business work with our environmental partner Green Element to set up CCAs for textiles, food & drink and other industries and has an efficient system to get up and running as fast as possible. Our costs are extremely competitive and to get a fast-turnaround quote and proposal please give us a ring on 01444 220069 or email us at keyaccounts@smarterbusiness.co.uk as soon as possible – to give enough time to get your CCA in before the 30 th September 2020 deadline.

What is a CCA?

CCAs aim to reduce energy consumption and global warming through carbon dioxide emissions. They are voluntary agreements made between UK businesses and the Environment Agency.

The agreement was established for two main reasons, to help Government to achieve GHG reduction targets and to allow large energy users to reduce the cost of the Climate Change Levy (CCL) standing charge on their electricity and gas bills. The deadline for all new participants to join the scheme is 30 th September 2020.

For organisations with a CCA, the CCL discount is:

  • 92% on electricity bills
  • 65% on gas other fuels

If you sign up to a CCA, you agree that your business will measure and report your energy usage and carbon emissions against agreed targets over two-year target periods. If you don’t meet all of the targets you can still continue with your CCA but buy carbon credits to cover the gap at £14 per tonne.

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