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A guide to reducing your energy bills with the Climate Change Agreement

Statistics show that carbon dioxide (CO2) levels have increased by 40% since the industrial revolution.  This increase has been linked to the burning of fossil fuels for energy, agriculture and deforestation, as well as from manufacturing processes, such as those for producing chemicals and metals.


The UK government has made a commitment to tackling climate change, and in April 2013 it introduced Phase 2 of the Climate Change Agreement.  This agreement is due to run until March 2023 and aims to help UK businesses, which are deemed energy-intensive, reduce both their energy use and reduce CO2 emissions.


The SEA is the designated sector association and administers two umbrella Climate Change Agreements, one for surface engineering and the other for heat treatment. Together with the Environment Agency, we have agreed the efficiency targets for both of these sectors.

Companies (operators) working within surface engineering or heat treatment sectors, who have signed up to an underlying agreement, are required to monitor and report their energy consumption against the agreed efficiency targets. If the operator meets its targets at the end of each reporting period, and continues in the scheme, then they will be eligible for a discount on the Climate Change Levy (CCL). The CCL is the tax introduced by the UK government with the intention of controlling energy use and emissions levels of businesses.

For operators who hold an agreement and meet their targets, the CCL will be reduced by 90% on electricity bills and 65% on all other fuels. Not only are businesses saving on the amount of taxation they are required to pay, by reducing energy use they are also saving money on their energy bills. For more information on how to operate your Climate Change Agreement, the Environment Agency has published a detailed Operations Manual which explains how to set up and manage an agreement, and how to report your energy data against the targets set.

The Carbon Trust has free publications for advice on reducing your organisation's carbon footprint, which includes energy efficiency. These can be downloaded from their website.

If you are still left confused by the Climate Change Agreement and all that it involves, the SEA are here to help. You can contact us via email us at info@sea.org.uk or call us on 0121 237 1123.

Sub Menu

  1. Benefits of SEA Membership
  2. Made for Space event – discover the opportunities for the surface engineering sector
  3. Increase in Climate Change Levy Rates
  4. Official launch of the Surface Engineering Leadership Forum
  5. Looking after the industry with SELF
  6. A successful Gala Dinner and Awards for the SEA
  7. The Importance of Being a Part of a Trade Association
  8. Cadmium plating – an introduction
  9. A brief guide to the chrome plating process
  10. The REACH Directive and the implications to the surface engineering industry
  11. Your guide to electroplating
  12. Your guide to COMAH 2015 and how it affects your business
  13. The Surface Engineering & Heat Treatment Industry conference – an event you shouldn’t miss
  14. An introduction to hard chrome plating
  15. Metal Finishing
  16. Nickel plating and the SEA
  17. EPR Consolidation Update
  18. Surface Finishing
  19. The Surface Engineering Association
  20. Surface Finishing Legislation
  21. REACH Regulations
  22. REACH Chemicals
  23. COSHH Regulations
  24. Surface Finishing Industry Association
  25. Electroplating Chemicals
  26. Trade Associations
  27. REACH Compliance
  28. The Surface Finishing Industry
  29. A guide to reducing your energy bills with the Climate Change Agreement
  30. The Aims of the Climate Change Agreement
  31. EPR 2016 is coming!
  32. REACH and the impact of Hexavalent Chromium
  33. The Future Of Plated Plastics
  34. D-Day For Chromium Trioxide?
  35. Meet the 2016 Award Winners
  36. The Horizon 2020 Project
  37. SEA members contribute to world-leading research
  38. The REACH Cross Sector Group
  39. Importance of Membership
  40. The HS&E Committee – An Important Update
  41. The Importance of Networking Events
  42. BATF commission portrait in memory of former President
  43. Have you got your tickets yet?
  44. REACH - What's happening under this legislation?


© Surface Engineering Association
Federation House, 10 Vyse Street
Birmingham, B18 6LT, UK

T: 0121 237 1123
F: 0121 237 1124
E: info@sea.org.uk