Delivering savings from Climate Change Agreements

Background

Ocado is the world’s largest, dedicated, online grocery retailer, focussed on providing customers with the best shopping experience in terms of service, range and price. Ocado worked with Envantage to set up Climate Change Agreements (CCA) for its Customer Fulfilment Centres in Hatfield & Dordon.

Climate Change Agreements

A CCA is a voluntary agreement that stipulates targets for eligible industry sectors to increase energy efficiency or reduce carbon dioxide (CO2) emissions. They allow eligible, energy-intensive businesses to receive discounts of up to 90% on electricity and 65% on gas off their Climate Change Levy (CCL) in return for meeting energy efficiency or carbon-saving targets. CCL is a tax on energy delivered to non-domestic users in the United Kingdom. Its aim is to provide financial incentives to increase energy efficiency and reduce carbon emissions.

Solution & Outcome

Known for its forensic attention to detail, Envantage ensured the correct energy consumption was reported for the scheme and that the maximum CCL discount was accurately calculated and claimed, achieving savings of £787,145 during the period between January 2013 and June 2017.

With its CCAs now in place, thanks to Envantage, Ocado is no longer required to report its energy consumption under the Carbon Reduction Commitment, avoiding CRC fees of £1,256,425.