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Climate Change Levy rebate scheme opens to new entrants

Climate Change Levy rebate scheme opens to new entrants

The CCL rebate scheme for the textile industry has been running very successfully since 2002. In that time the industry has saved over £90 million in the Levy and energy-saving measures have seen the sector reduce its emissions by over 600,000 tonnes of CO2.

 

THE CCL SCHEME

The Climate Change Levy was introduced as an energy tax payable by all business in 2001. However, some industrial sectors were offered a rebate in the Levy in return for agreeing to specific energy reduction targets. For the textile industry, there are two separate schemes one covering the wet processing sector (dyeing, printing coating and associated drying and finishing activities) and the other covering spinning, weaving and knitting (and other similar processes).

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Companies joining the UKFT CCL scheme will be eligible for a rebate of some 92% on the CCL on electricity and 81% on the levy on electricity. On average companies are currently saving over £30,000 a year, but for large companies the savings can be over £100,000 a year.

In order to maintain the discount companies must meet set energy reduction targets. New entrants to the scheme will need to demonstrate that by 2022 they will have reduced the amount of energy used by 7% compared to 2018.

The CCL rebate scheme for the textile industry is administered by UKFT. UKFT will help companies complete all the necessary paperwork, will submit all necessary registration details etc to the Environment Agency. UKFT collect and monitor the company’s performance every three months and help companies develop strategies to meet their energy reduction targets.

There are costs involved in taking part in the scheme. There is a fee of £185 that is payable to the Environment Agency, a UKFT joining fee of £250 and then an administration fee payable to UKFT of an annual 5% of the savings achieved through the scheme. This figure drops to 3% for those companies that are members of UKFT or are a member of an organisation that in turn is a member of UKFT.

 

 

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