Time to reap the rewards of the CCA scheme

Time to reap the rewards of the CCA scheme

CCA deadlines are looming – take action now to benefit.

Climate Change Agreements (CCAs) are an effective tool for businesses to improve energy efficiency across qualifying sites. Incentivised through a significant discount from the Climate Change Levy (CCL) on energy bills, each participant has a target to achieve by 2020. Milestones are set at biennial intervals to measure progress.

Savings from the scheme are equivalent to about a 5% reduction in energy cost (12% if businesses are also mitigating involvement in the Carbon Reduction Commitment (CRC) by being in a CCA). In the majority of cases, participants find their savings outweigh any related costs.

Rarely does a CCA-holder end up at a loss. If that ever looked to be the case, they can always walk away before the end of any target period thus avoiding a penalty. Therefore, if you are eligible and not in the scheme already we strongly advise you to join an agreement. With a deadline looming, time is of the essence so you need to take action now.

Eligibility for the scheme is based around two sets of criteria. The first is operation of a permitted process under the Environmental Permitting Regulations (EPR) – ignoring the thresholds in those regulations. The second is one of the listed Energy Intensive processes within a trade sector that has an agreement, such as plastics, data centres or cold storage.

Deadlines are looming

With the Environment Agency as administrator of the scheme, some strict rules have been set to ensure both the Government and participants are able to utilise CCAs for their intended purpose.

One such rule is that all new applicants must have joined by 31 July 2018.

The principal behind this is that the scheme (in terms of the CCL benefit) is due to run until March 2023. As we are over halfway through the defined target periods, the later you join the more ‘carrot’ and the less ‘stick’ you’re getting. In addition to this, when the CRC ends from April 2019, the rates of CCL, and therefore potential discount levels, rise significantly. This is in order for the Government to recoup the revenue lost by the exchequer, so the benefit of having a CCA will almost double.

In short, if you can get into an agreement before the new entrant deadline, you stand to benefit from around 4 and a half years of CCL discount, for only one target reconciliation.

CCA eligibility

You are eligible for the scheme if;

  • your company is operating either an EPR regulated or defined Energy Intensive process with
    • at least 70% of your energy consumed in the qualifying process and
      • it’s directly linked energy consumption (as opposed to other site functions like offices)

Even if it isn’t as clear cut and you think you might only be partially eligible, there’s good and bad news. The good news is you also have until 31 July 2018 to apply, however, the bad news is your application must be supported with 12 months’ worth of sub-meter data to prove eligibility. If you didn’t have sub-metering in place by 30 June this year, you are most likely going to have missed the chance to get that data in time.

Utilitywise can help

Utilitywise employs a team of expert consultants who have been managing CCA applications and subsequently looking after our clients’ agreements since the very start of the scheme in 2001. If you think you might be eligible, it is worth talking to us about how we can help you take advantage of the considerable benefits of a CCA. Call us now on 01527 511 757, visit our website, or email corporate@utilitywise.com before it’s too late.

Utilitywise

Posted by on Wednesday, the 9. August at 15.59

Utilitywise has been helping businesses manage their business utilities since 2006. With over 40,000 customers across Europe, we help businesses save time, save effort and save money by reducing their energy and water consumption.