Is Your Organisation Prepared for Carbon Reduction Commitment Targets (CRC)?

Initially, your business will be required to declare its current consumption level. This will establish which businesses are affected and the emissions level of the target sector.

Then every year, affected businesses will have to buy allowances to cover their emissions. These allowances are certificates that correspond to the level of your emissions. The certificates are surrendered at the end of the year, along with evidence of consumption, such as an Annual Statement of Emissions from suppliers.

An annual league table will show all participants’ annual energy consumption and reduction compared to the previous year. Those organisations performing well will benefit from a financial incentive.

What do I have to do now?
Although the CRC doesn’t start until 2010, you will be expected to submit your company details, including records of 2008's energy consumption (this includes all energy sources) in 2009. Organisations will have to confirm to Defra whether or not they will be liable for CRC.

How can Challis Water Controls help me?

Challis Water Controls will help you meet your targets to reduce your carbon emissions and maximise the financial opportunities of the new CRC legislation.

 What is the Carbon Reduction Commitment (CRC)?
Coming into force in January 2010, the CRC is a mandatory scheme operated by Defra, who will impose fines on any business that fulfils the entry criteria but does not participate or comply fully.

Will it affect my business?
If your organisation, including any parent company and subsidiaries, spends more than £500,000 a year on electricity then you’re likely to be included. The proposed annual consumption threshold is over 6GWh across all of your half hourly metered sites.

What commitment do I need to make?

We recognise that the CRC will make it increasingly important for businesses to be able to understand exactly how they use water & energy and to have a clear plan of action to reduce consumption.

Measure, Monitor and Minimise are the key steps that need to be taken to put businesses back in command. Challis Water Controls will help deliver a long-term and sustainable reduction in water & energy consumption, helping business succeed in the low carbon economy.

Climate Change Levy Costs To Your Businesss

Many company’s and organizations are blissfully unaware of the climate change levy, its implications and costs as it often appears unnoticed on your gas and electricity bills. Over time this levy can amount to a significant figure which with careful consideration and planning can be reduced or negated completely.

What Is the Climate Change Levy (CCL)?

The levy is part of a range of measures designed to help the UK meet its legally binding commitment to reduce greenhouse gas emissions. It is chargeable on the industrial and commercial supply of taxable commodities for lighting, heating and power by consumers in the following sectors of business:

• industry
• commerce
• agriculture
• public administration
• other services

The levy does not apply to taxable commodities used by domestic consumers, or by charities for non-business use.

All revenue raised through the levy is recycled back to business through a 0.3% cut in employers’ national insurance contributions, introduced at the same time as the levy, and support for energy efficiency and low carbon technologies.

What does the CCL Cost?

Rates of the levy are:

• 0.159/kWh for gas
• 1.242p/kg for coal
• 1.018/kg for liquefied petroleum gas (LPG)
• 0.456p/kWh for electricity
• The levy rates for different fuels remained flat since their introduction in 2001, however it was announced in the 2006 Budget that they will be increased in line with inflation from 1 April 2007.
• The levy does not apply to fuels used by the domestic or transport sector, or fuels used for the production of other forms of energy (e.g. electricity generation) - there are also other specific energy sources that are exempt, including electricity generated from new renewables

How is it Collected?

The Levy is added to your energy bills before VAT and, although there is no legal requirement for it to be shown, is likely to appear as a separate item on energy bills under title CCL or Climate Change Levy and collected by your energy supplier as part of your bill.

How Do I reduce my CCL Liability?

The simplest and most efficient way to reduce your CCL liability is to reduce your energy usage and requirement.  Challis Water Controls are ideally suited to assist you in this by the installation of water & energy efficient products to replace your high energy using equipment.  We can also advise you on the various loans, grants and tax allowance schemes currently available on our equipment making installation of these energy efficient products much more cost effective than you would imagine. Some of our units have payback periods as short as 2 months providing real quantifiable saving now and most importantly into the future.