31st July 2018 is your last chance until 2023 to sign up with the government’s Climate Change Agreements (CCA) Scheme.

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 Agreements (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

  • £7,877 per year from 2019 and
  • a minimum gross total of £42,000 between 2018 and 2023 (likely to be more as the Climate Change levy (CCL) increases each year)
  • net savings including CCA fees and our consultancy charges would be £33,900 between 2018 and 2023*

For 5,000,000 kWh annual electricity consumption savings would be

  • £39,386 per year from 2019 and
  • a minimum gross total of £210,045 between 2018 and 2023 (likely to be more as the Climate Change levy (CCL) increases each year)
  • net savings including CCA fees and our consultancy charges would be £195,900 between 2018 and 2023*

High intensity gas users could save:

For 1,000,000 kWh annual gas consumption

  • £2,644 per year from 2019 and
  • a minimum total of £13,880 between 2018 and 2023 (likely to be more as the Climate Change levy (CCL) increases each year
  • net savings including CCA fees and our consultancy charges would be £5,700 between 2018 and 2023*

For 5,000,000 kWh annual gas consumption

  • £16,950 per year from 2019 and
  • a minimum total of £69,404 between 2018 and 2023 (likely to be more as the Climate Change levy (CCL) increases each year
  • net savings including CCA fees and our consultancy charges would be £55,290 between 2018 and 2023*

High intensity LPG users could save:

For 1,000,000 kg annual LPG consumption

  • £16,965 per year from 2019 and
  • a minimum total of £89,063 between 2018 and 2023 (likely to be more as the Climate Change levy (CCL) increases each year
  • net savings including CCA fees and our consultancy charges would be £80,000 between 2018 and 2023*

For 5,000,000 kg annual LPG consumption

  • £84,825 per year from 2019 and
  • a minimum total of £445,315 between 2018 and 2023 (likely to be more as the Climate Change levy (CCL) increases each year
  • net savings including CCA fees and our consultancy charges would be £400,000 between 2018 and 2023*

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.

*based on assumption that you’re already member of your trade sector association and paying their annual fee.

Can my company get a Climate Change Agreement?

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 Green Element get me a CCA and how much will it cost?

Green Element has set up CCAs for textiles, food & drink and other industries and has an efficient system to get your CCA 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 020 70960054 or email us as soon as possible – to give enough time to get your CCA in before the 31st July deadline.

It’s likely that the CCA scheme will continue after 2023 for another phase which will mean continued savings – if you’d like updates on this and other energy legislative updates and savings opportunities please subscribe to our newsletter below and we’ll keep you informed.

 What is a Climate Change Agreement (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 current CCA scheme started in April 2013 and will run until 31 March 2023. The deadline for all new participants to join the scheme is 31 July 2018 in order to have the scheme up and running by the EA deadline of 31st October 2018.

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.

For organisations with a CCA, the CCL discount is:

– 90% on electricity bills

– 65% on gas other fuels

From April 2019, the CCA discounts on the CCL tax will jump to:

– 93% for electricity

– 78% for gas and 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.

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