Although there is still a lot of uncertainty for UK business in 2019, there is some good news for businesses which have already signed up to the Climate Change Agreement (CCA) – the percentage of discount for holders of a CCA went up on the 1st April 2019.

Businesses will see an increase in discount on Climate Change Levy (CCL) rates of 3% on electricity, and 13% on gas, LPG and any other taxable commodity.

A CCA is a voluntary agreement between industry and the Environment Agency and will run until 31st March 2023. The CCL aims to encourage non-domestic energy users – especially those operating in industry, commerce and the public sector – to not only improve energy efficiency, but also reduce their greenhouse gas emissions.

The Environment Agency recognised that the SEA is the designated Sector Association for the surface engineering and heat treatment sector. This means that we manage the CCAs on behalf of businesses in the sector. As the Sector Association, we are here to provide our members with clear and essential guidance on the CCA and CCL, as well as providing advice on how our members can meet their targets.

Businesses which have signed up to the CCA are required to measure and report their energy use. Those that meet their agreed targets receive a significant reduction on the amount of CCL they have to pay the government. Following the change on 1st April 2019, businesses will now receive a discount of 95% on the rate of CCL on electricity bills and 78% on any other fuel.

However, businesses which have not already signed up to the CCA will not be able to benefit from these discounts, as the SEA is no longer able to sign any new companies up to the CCA.

If you would like to read more about CCA and the changes to the CCL rates, please visit the government website – https://www.gov.uk/government/publications/rates-and-allowances-climate-change-levy/climate-change-levy-rates

If you would like to speak to us about the above, or have any other questions about the CCA, please give us a call on 0121 237 1123, or email us at info@sea.org.