Climate change agreements (CCA) are voluntary agreements made by UK businesses to reduce energy use and carbon dioxide (CO2) emissions.
It is now even more cost-effective and financially lucrative for companies to obtain a CCA with the abolition of the CRC and the impending increase in Climate Change Levy (CCL) in 2018. Why not get in touch with our Carbon Specialists today to find out how a CCA can benefit your business.
How do CCAs work?
CCAs allow eligible energy-intensive businesses to receive a discount on the Climate Change Levy (CCL), a tax added to electricity and fuel bills, in return for meeting energy efficiency or carbon-saving targets.
For operators who hold a CCA, the CCL will be reduced by:
90% on electricity bills
65% on other fuels
CCAs are available for a wide range of industry sectors from major energy-intensive processes such as chemicals, paper and supermarkets to agricultural businesses such as intensive pig and poultry farming. Businesses within the mineralogical and metallurgical (Min/Met) sectors are automatically entitled to 100% discount on the climate change levy.
How we can help with Climate Change Agreements
Brownlow Utilities have worked with these agreements since their inception and are well practiced in obtaining and managing CCAs on behalf of our clients.
Our range of CCA services includes:
Obtaining a CCA
We can confirm eligibility and complete the relevant forms for businesses wishing to obtain this exemption through the following activity:
– Visit your site to establish the eligibility of your processes for exemption from the Climate Change Levy
– Perform the necessary investigations and calculations to establish the Levy exemption you can gain, up to 90%
– Collect and validate the data to be used in your application
– Ensure that valid, auditable data capture processes are put into place
– Complete the application for your new Agreement on your behalf
– Liaise with all relevant parties, including your Trade Association and the managers of the sector’s Agreement
– Organise your information into an Evidence Pack, which when updated will protect you in the event of any future issues, or audits by Defra or Her Majesty’s Revenue & Customs
Maintaining a CCA
When your Agreement has been secured, Brownlow Utilities will work to maintain the agreement by managing the processes involved in meeting these obligations as follows:
– Make regular submissions to your Trade Federation and Defra on your behalf, as required by your Agreement.
– Provide you with a monthly “Climate Change Levy Status” report showing your performance against the targets set by your Agreement and your forecast results for the relevant Milestone period.
– Maintain your Evidence Pack to ensure it is up-to-date according to best practice.
– Work with you in the event of an Audit by HM Revenue & Customs or Defra. Audits are increasingly common and can result in you losing your exemption.