Climate Change Agreements consultation to extend to March 2025
Change Agreements (CCA) have been around since April 2001 and the present
scheme since 2013.
What is a
is a voluntary agreement to reduce energy use and set specific energy
efficiency measures in return for receiving a discount on the Climate Change
Levy (CCL) component of your energy bill. The scheme is administered by the
can be saved?
rate of CCL applied to business is 0.811 per kWh for electricity and 0.406 p
per kWh for gas.
total discount is 92% for electricity and 81% for gas.
scheme, which was initially due to end in March 2023, is under consultation to
be extended to March 2025. You can currently apply for your premises to join
the CCA scheme, although approval will depend on the outcome of the
all businesses are eligible, only those deemed energy intensive can receive the
discount. There are 53 energy sectors covered by the scheme which range from
steel to agriculture.
return for the CCL relief, a site (target unit) must meet energy efficiency
targets set for the relevant sector. It is estimated that CCAs have helped
businesses reduce their energy consumption by up to 2.3 terawatt hours per
happens if targets are not achieved?
reporting period is every 2 years. If, as a CCA holder, you do not meet the
targets for your sector, then you are obliged to purchase the shortfall kWh as
happens if you overachieve the set target?
your emissions are lower than your target, then this can be banked and used for
future reporting periods where you might not have initially been able to meet
Control Energy Costs, we are hopeful that the consultation will mean that the
scheme will be extended. If you have any questions about CCAs or would like to
know if you could benefit from a CCA, then get in touch with the team.