A Climate Change Agreement (CCA) is a voluntary agreement allowing businesses in energy-intensive industries to receive a discount on the Climate Change Levy (CCL) that they pay. The CCL is a tax added to electricity, fuel and gas bills of your company if you are in the industrial, commercial, agricultural or public service sector. By signing up to a Climate Change Agreement, your business can receive savings up to 90% on the CCL, depending on your business this can mean thousands of pounds of savings per year.
By creating a CCA, one of our clients, Blossom and Browne’s Sycamore, achieved first year savings of £20,500 by reducing the CCL that they paid on their electricity and gas bills.
To check if you are currently paying the Climate Change Levy and how much, see your monthly energy bill. This will usually be listed under your charges and calculated at the following rates:
As shown above the CCL rates that businesses will have to pay are increasing, meaning there has never been a more beneficial time to create a CCA and avoid these cost hikes.
The discounts afforded by a CCA are significant and have only been rising. These discounts, which are applied on successful implementation, can result in significant savings in business operation costs.
Green Element has helped many of our clients successfully reduce the cost of their energy bills and minimise their carbon emissions through implementing Climate Change Agreements. We are happy to work with your business to meet your environmental goals, visit our service page for more information.