If you have not already seen the increase in your utility invoices, the next that you receive will have an increase in the CCL charge from 1st April 2019.
Directly linked to every KWh that you use, the CCL, as of the 1st April 2019, has increased from .583p/KWh for electricity and .203p/KWh for gas consumed to a staggering .847p/KWh for electricity and .339p/KWh for gas consumed.
What is the CCL?
CCL is an energy tax that aims to increase energy efficiency. The increase in the tax is supposed to incentivise companies to reduce consumption thus helping with climate change as well as reducing costs for the company itself. This tax is directly passed on to customers from the government through their utility invoices.
The increase from 2019 to 2020 also ties in with the end of the Carbon Reduction Commitment Energy Efficiency Scheme (CRC). This was a mandatory carbon emissions reduction scheme that applied to large energy-intensive organisations in the public and private sectors within the UK. The CCL intends to recoup revenues lost from the CRC.
What, if anything, can I do to reduce this tax?
Reducing your consumption and becoming more energy efficient helps to reduce this tax, but there is also another way for energy-intensive organisations to reduce the tax. Climate Change Agreements (CCAs).
Climate Change Agreements
CCAs are voluntary agreements made by UK Industry and the Environment Agency to reduce energy use and carbon dioxide levels in our environment. This agreement will set targets of energy reduction over a set period and based on the level of reduction determines how much the levy is reduced by
For companies who hold a CCA, the CCL will be reduced by:
- 90% on electricity bills
- 65% on other fuels
The climate change agreements started in April 2013 and will run until 31st March 2023, so you’ll need to act fast if you are looking to apply for one.
For more information on how Climate Change Agreements work and how you can apply, please visit the Government website or contact our Utility Team specialists on 02476 997 901 and we can advise on eligibility of the scheme as well as helping with the application process.
Reduce your consumption
Energy reduction measures like LED lighting, solar, upgrading of building management systems, energy monitoring audits and other initiatives not only reduce your energy consumption but also help your company become more environmentally friendly.
Although initiatives such as these may seem costly and are a large initial upfront outlay, the return on investment received far outweighs the initial cost. Utility Team are here to help reduce consumption and in turn, reduce costs for our clients.
Unavailable funds for energy reduction measures?
We can help, we have been working with a number of business to help provide a non-interest-bearing fund for energy reduction measures that is directly linked to your energy contract. The Revolving Green Fund (RGF).
For more information on our RGF, please call Julie Plunkett-Dent, Business Development Manager 07710 703 425 or 02476 997 901, and a member of the team will be happy to help. You can also email firstname.lastname@example.org.
Utility Team can also help with the planning and implementation of an energy reduction and a sustainability plan; we initially complete a thorough site audit to identify ways in which you can reduce your consumption. A full and detailed ROI report will then be provided and should you wish to pursue these measures we can take the hassle out of your hands by project managing the whole job from start to finish.
For more information on the Climate Change Levy, please visit the Government website.
Article written by Julie Plunkett-Dent, Business Development Manager, Utility Team.