Climate Change Levy Training

As a general guide, any company with one or more UK sites where energy costs represent 5% or more of annual operating costs is significantly affected by the Climate Change Levy (CCL). Although you may think there is little that can be done to mitigate its impact, closer examination may reveal a number of possibilities for using the CCL system to reduce your costs.

Most companies will want to be proactive about minimising the cost of the CCL. This means not only reducing energy consumption but taking full advantage of indirect methods of recovering CCL costs.

The course covers the following topics:

An introduction into the structure and potential cost of the CCL. An understanding of the basic workings of the Levy is important in ensuring that Directors and Senior Managers can take full advantage of methods to reduce the financial impact of the CCL.
How CCLA's (Climate Change Levy Agreements) are structured. This relates only to companies allowed discounts on the CCL rate. The majority of sites do not operate an installation as described by the PPC (Pollution Prevention and Control) Regulations and so will not be permitted to obtain a discount in the rate of the CCL. Such companies are subject to the full burden of the Levy and will want to take whatever measures are available to reduce cost.
Methods for monitoring energy use against targets and reporting performance. Companies holding CCLAs will need to report performance on a regular basis to the Sector organisation. Those not allowed CCLAs have added incentive to monitor energy performance due to increased energy cost due to the CCL.
Information about Government assistance (grants and Enhanced Capital Allowances) to mitigate increased energy costs. It is important that companies are aware of ways in which financial assistance can be utilised in the form of Grants and Enhanced Capital Allowances (ECAs). The matter of ECAs is covered in sufficient detail to allow the user to make a judgement regarding benefit in a particular company situation.

Examples are given to demonstrate that the CCL produces added incentives to reduce energy consumption since successful companies will save the cost of the energy plus the costs of the CCL on each unit saved.

If you wish to expand your knowledge further in this field or need specific assistance with reducing energy consumption through improving energy efficiency, you may also want to complete our Reducing Energy Costs course. This course highlights areas in which senior managers can target and achieve reduction in energy cost through employee awareness.