Everyone from the government to businesses are being asked to play their part when it comes to the biggest challenge that the world has faced this century: climate change. Reducing energy consumption is something that can be done by everyone in order to help reduce the amount of carbon emissions that are being put into the atmosphere.

In the UK, the government is asking companies to find ways to reduce their energy consumption. In fact, they are actively looking to deter energy use through the Climate Change Levy (CCL).

 

What is the Climate Change Levy?

The Climate Change Levy is an environmental tax that is levied on the energy that a business consumes. The tax Is an encouragement for businesses to work in a way that is more energy efficient and that will reduce their greenhouse gas emissions overall.

In essence, it has been designed to incentivise companies to avoid using energy that results in carbon emissions. The more energy efficient a company is, the less tax they will need to pay, so the CCL should encourage businesses to take the steps that will see their energy consumption reduced.

 

What type of businesses does this affect?

The CCL does not apply to all businesses, only those who operate in the following sectors:

• Industrial
• Public
• Commercial
• Agricultural

Businesses that only consume a small amount of energy (i.e. under 145 kWh gas and 33 kWh electricity per day), that are a charity involved in any non-commercial activities and any energy that is consumed in a home, school caravan or self-catering accommodation are considered exclusions from the levy.

Some businesses may be entitled to a reduced rate if they make changes to the way they operate their business to help improve their energy efficiency.

 

How can you benefit from the levy?

Whilst it is certainly true that the levy could end up costing your business there are some steps that you can take that will help to alleviate this cost. The lower your energy consumption the lower the cost of the CCL your business receives will be. With this in mind it is essential for all businesses to look at the way in which they are currently consuming energy and look for ways in which they can reduce this.

Identifying equipment that is using a lot of energy, or points at which energy is being wasted in your business, for example lights being left on in rooms that are not in use is a good place to start. Once you have identified issues like lights being left on and equipment not being turned off overnight where possible, it can be a good idea to alert your employees to these new procedures so that they can be put in place on a company-wide scale.

Remember, on their own, these little changes may not make a huge difference but when done collectively these little changes can make a big difference that should result in reduced energy consumption and bills and hopefully a smaller levy.

 

For the latest energy tariffs, do get in touch with D-ENERGi for the expertise and experience. For more energy saving tips and advice on how to improve the energy efficiency of your business premises, check out more of our D-ENERGi blogs.