The Energy Savings Opportunity Scheme (ESOS) is nearing the end of its second compliance phase (Phase 2). On 5 December 2019, thousands of qualifying organisations in the UK are expected to have completed audits of their energy usage that identify energy savings opportunities across their enterprises. (more…)
EDF Energy has claimed that the average UK business could save more than £46,000 per year on its energy costs by improving on its energy management practices. While energy efficiency improvements have been a central feature of UK energy policymaking and awareness-raising, most organisations have yet to implement some low-hanging fruit measures. (more…)
The Department for Business, Energy and Industrial Strategy (BEIS) has published an evaluation of its Electricity Demand Reduction (EDR) pilot and a new call for evidence on facilitating energy efficiency in the electricity system. The 2014-2018 EDR pilot was a mechanism designed to test the viability of energy efficiency programmes in the UK Capacity Market (CM). (more…)
A new Committee Report for the Department for Business, Energy and Industrial Strategy (BEIS) has highlighted shortfalls in UK energy efficiency policy across various sectors. Since the UK government committed to a 2050 net-zero greenhouse gas emissions target, all sectors of its economy are coming under greater scrutiny to develop emissions reductions strategies. (more…)
Looking ahead to the next financial year, one of the cost changes to allow for is the increase to the Climate Change Levy (CCL). The CRC Energy Efficiency Scheme will end in 2019, and the government will replace the income stream to the Treasury via an increase to CCL, as follows:
Non-CRC Participants will see a significant increase from April 2019 unless they claim other CCL exemptions. For example, Climate Change Agreements (CCAs) are voluntary agreements available to energy-intensive industries in certain sectors, such as the chemicals sector. In return for meeting energy efficiency targets, these industries secure a CCL discount on their eligible energy use. The current CCA scheme is now closed to new entrants, but for those with a CCA in place, the discount will increase from April 2019 as follows:The year-on-year increase is significant, equating to a 45% increase to CCL for electricity and a 67% increase for gas. The higher increase to the gas rates is a step by the government to rebalance the ratio between electricity and gas as the generation mix for electricity becomes less carbon-intensive. The intention is for the ratio to be 1:1 by 2025.
Percentage discount for holders of a CCA
An exemption from CCL can also be claimed for energy used in mineralogical or metallurgical activities (as defined by HMRC), often referred to as the Min/Met exemption. Other exemptions are in place, for example for some charities and for businesses that consume negligible quantities of energy.
The final CRC year runs from April 2018 to March 2019, with the final payment for buy-to-comply allowances due in September 2019. The reporting element of the CRC will be replaced by the new Streamlined Energy and Carbon Reporting (SECR), also to be introduced from April 2019.