When a climate change levy was introduced in the United Kingdom, the position of energy-intensive industries was considered, given their energy usage, the requirements of the Integrated Pollution Prevention and Control regime and their exposure to international competition. As a result, a 65% discount from the levy was allowed for those sectors that agreed targets for improving their energy efficiency or reducing carbon emissions. The discount on electricity increased to an important 90% in 2013. Companies entered into Climate Change Agreements through their relevant trade associations.
An ‘energy-intensive’ sector is one which either carries out activities which are listed as Part A(1) or A(2) activities in Part 2 of Schedule 1 to the Environmental Permitting (England and Wales) Regulations 2010 (Statutory Instrument 2010 No.675) (as amended), or that satisfies energy intensity criteria provided by the Department of Energy and Climate Change.
The regulations cover the ten main energy-intensive sectors of industry (aluminium, cement, ceramics, chemicals, food and drink, foundries, glass, non-ferrous metals, paper, and steel) and over thirty smaller sectors, and in agriculture, livestock units for the intensive rearing of pigs and poultry.
How CCAs work:
- The current CCA scheme started in April 2013 and will run until 31 March 2023.
- An operator that has a CCA will measure and report its energy use and carbon emissions against agreed targets over four, two-year target periods.
- If an operator has more than one eligible facility in the same sector it could hold individual CCAs for each facility, or choose to group them together under one CCA. The target could then be shared across the grouped facilities.
- Once a facility, or group of facilities, holds a CCA, it is referred to as a target unit.
- If the operator meets its targets at the end of each reporting period, it continues in the scheme and is eligible for the discount on the CCL.
How we can help you reach your CCA Milestones
At Sentridge Control we have worked with many clients to reduce their Energy bills, improve performance and reduce cost of product production. This can result in reduction of Water usage, Air production, Gas usage as well as Electricity. We have a proven process to identify areas where savings have been made successfully elsewhere using the latest Drives technology to streamline process and eliminate costly energy waste. Talk to us and we will be happy to work with you on meeting your Milestones.
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