Monday 17 January 2022
CCA deadline extension and what it will mean
The Climate Change Agreement (CCA) application deadline has once again been extended. The current CCA scheme started in 2013 and has since been extended twice. These voluntary agreements are made between UK business and the government, with the goal of reducing energy use and carbon dioxide emissions.
The goal is to allow businesses operating within energy intensive industry sectors to reduce the cost of the current Climate Change Levy (CCL) on their electricity and gas bills.
We look at why businesses should submit their application as soon as they can.
Who is eligible?
The Department of Energy and Climate Change negotiated with relevant industry sectors to decide upon energy efficiency targets. These targets were then included in ‘umbrella’ agreements between industry sectors (‘sector associations’) and the government. Businesses that operate sites must first apply to their sector association before they can enter into a CCA.
These high-level agreements also include a list of processes required for a business to become eligible for a CCA, such as:
- A process at a site which is considered energy intensive by the Environment Agency,
or
- A process that is controlled under the Environmental Permitting Regulations.
CCAs are applicable to a range of industries – from plastic moulding and metal packaging, to agricultural businesses such as pig and poultry farming. Eligible businesses can save up to 92% on their electricity and 83% on gas from payment of the CCL (Climate Change Levy). Meaning a CCA can make a significant difference to your energy bills and business as a whole.
It is a requirement of the CCA for a business to report on its energy use and carbon emissions. These statistics will then be measured against agreed targets over 2-year target periods, up to the end of 2022. A business can hold a CCA for each site, or choose to group them together under one. If grouped under one CCA the target is then spread across the grouped facilities.
What does this mean for new entrants?
The extension of the deadline means that new, eligible companies still have time to get their applications in to the Environment Agency. But they must do this fast. The deadline for applications is now 31 March 2022. New applications are made via the relevant industry sector association. But it should be noted that some sectors are setting an earlier deadline, so check with your industry body.
The reopening of the scheme is an opportunity for new entrants to benefit from Climate Change Levy (CCL) savings. This means reduced rates until March 2025. Businesses can reinvest these savings in actions which will reduce their carbon impact – which is becoming increasingly important as they strive to meet their net zero carbon targets.
How can EIC help?
Following a turbulent year, energy professionals may simply not have the time or capacity to work through the CCA process. And therefore, risk missing out on a potentially beneficial opportunity.
At EIC, we aim to ease this process. We take a 360-degree view, assessing the benefits to your organisation, and advising of the scheme’s requirements. That way we are able to make compliance as simple as possible for you.
We can fully manage the data and reporting requirements of the CCA process, alleviating the burden on your resources, whilst ensuring that you receive the benefits that are available. Our experienced consultants from engineering and industry backgrounds are here to support you through the application process.
To get started on the CCA compliance process contact us today.
