Climate Change Agreement (CCA)

What are Climate Change Agreements?

Climate Change Agreements known as a CCAs were introduced alongside the Climate Change Levy known as CCL (an energy tax). CCAs have the dual aims of reducing the financial impact of CCL on energy intensive sectors, and generating energy efficiency improvements which ultimately reduce carbon dioxide emissions. The CCA scheme started in April 2013 and will run until March 2023.

CCAs are voluntary agreements giving 53 eligible sector associations a discount on the CCL charges for electricity and fuel provided they meet their targets in the reporting period. Organisations and operators that are part of an eligible sector association and hold CCA can receive CCL discounts of:

  • 90% on electricity bills
  • 65% on other fuels

The percentage discount for holders of CCAs will change over time, the changes in percentages are shown below:

Taxable commodity Rate from 1 April 2017 Rate from 1 April 2018 Rate from 1 April 2019
Electricity 90% 90% 93%
Natural gas 65% 65% 78%
LPG 65% 65% 78%
Any other taxable commodity 65% 65% 78%

Source: www.gov.uk

Agreements

Each of the 53 eligible sector associations hold either umbrella agreements or underlying agreements. Umbrella agreements are negotiated between sector associations and The Department for Business, Energy and Industrial Strategy (formerly DECC). Underlying agreements are held by individual sites or groups of sites owned by an organisation or operator and are managed by sector associations.

Our service

If you are an organisation who wishes to reduce your energy costs and improve your energy and carbon performance, we can help you achieve this through compliance with the CCA scheme and ongoing support with energy efficiency measures and carbon reporting throughout the reporting period. We can also assist your organisation achieve reduced CRC payments through the CCA scheme.

To find out more please contact us and we will be happy to help.

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