Eligible industries can enter into agreements with the Department of Energy and Climate Change (DECC). In order to benefit from these agreements, an industry would either have to carry out activities listed in the Pollution Prevention and Reduction Regulations (PPC) or be considered an energy-intensive industry that meets specific energy intensity criteria. Currently, all CCAs are open to new applications, but this is expected to change by November 30, 2020. Eyebright will be happy to explain the relevant dates for your CCA Framework Agreement sectors. Each CCA contract has specific and often complex eligibility criteria, something Eyebright can tell you not to waste time applying for something you can`t do. In exchange for the sector`s energy efficiency target commitment (to be confirmed for target period 5), new entrants will benefit from a climate change tax (LCC) rebate on their energy bills. The percentage reduction for CCA holders is currently 92% for electricity, 81% for natural gas, 77% for LPG and 81% for other taxable raw materials. Currently, more than 50 sectors have negotiated and implemented framework agreements. Eyebright would like to advise you if your industry has a framework agreement. A framework agreement is an agreement between an inter-professional organization and the administrator that regulates the obligations of both parties under the climate change agreement. It lists all the target units covered by the framework agreement at the time of its signing. It is a voluntary system in which eligible industries that meet ambitious energy efficiency or emission reduction targets receive a 90% rebate on climate change tax for electricity consumption and 65% for other fuels. The CCAs have a two-tiered structure with agreements with economic sectors (umbrella agreements) and individual companies (basic agreements).
Each agreement sets objectives, defines the obligations of all parties to the agreements and defines the necessary administrative procedures. The objectives are negotiated between inter-professional organizations and the government, but it is the responsibility of inter-professional organizations to distribute the agreed objective among their members. eyebright manages all aspects of our client`s climate agreement and ensures that all necessary reporting obligations are met, while wooing the relevant energy suppliers to ensure that all relevant CCL HMRC reduction forms are submitted and that discounts are applied. Each of the 53 eligible professional organizations has either core or underlying agreements. Umbrella agreements are negotiated between inter-professional organizations and the Department for Business, Energy and Industrial Strategy (formerly DECC). The underlying agreements are held by individual sites or groups of sites owned by an organization or operator and are managed by interprofessional organizations. CCAs are voluntary agreements that provide 53 eligible professional organizations with a discount on CCL electricity and fuel charges, provided they meet their objectives during the reporting period.