Mitigating against CCL rises

Non-energy costs (often referred to as thirty-party costs) have consistently been on the rise in recent times and they now account for around 60 per cent of a company’s overall energy bill, and everything points to this trend continuing in the future.

This month has seen an increase in rates for Climate Change Levy (CCL, affecting electricity, natural gas, LPG and other taxable commodities. 

The CCL rate – an environmental tax on energy delivered to non-domestic users – has been raised to recover the revenue from abolishing the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) at the end of the 2018/19 compliance year.

One way to keep a check on these increases is by ensuring compliance and reducing energy consumption; energy efficiency is now every bit as important as procurement in terms of energy management.

Alternatively, your business may currently be in a Climate Change Agreement (CCA). Businesses who hold a CCA will see their CCL discount increase from 90% up to a 93% reduction in electricity costs and from 65% up to a 78% discount on gas, LPG and any other taxable commodity.

Taxable Commodity April 2018 Rate April 2019 Rate
Electricity (£/kWh) 0.00583 0.00847
Gas (£/kWh) 0.00203 0.00339
LPG (£/kg) 0.01591 0.02175

At Energy Management, we have an experienced team of energy consultants and chartered engineers who are highly-skilled at devising and implementing cost-reduction solutions including the introduction of energy-saving technologies. We are also have years of experience in guiding clients through the CCA process, ensuring all relevant procedures are followed to ensure CCL discount.

Our bespoke energy management portal, EM-Powered, is also an invaluable tool is accurately monitoring and reporting energy consumption so that businesses have a proper understanding of their consumption.

If you need help in managing your CCA, please get in contact on 01225-867722.