Category Archives: Press Release

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UK Carbon Market

Post Brexit Changes to the UK Carbon Market

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Overview

As part of the negotiated Withdrawal Agreement of the UK from the EU and as a means of enabling the UK’s net-zero carbon strategy until the middle of the century, the UK government has confirmed in this week’s White Paper that it will establish a UK Emissions Trading Scheme (UK ETS) from 1st January 2021 to replace the UK’s current participation in the EU ETS. The scheme has been designed by the Department for Business, Energy & Industrial Strategy (BEIS) to closely replicate the EU system that UK companies have been part of for almost 15 years and is intended to promote cost-effective decarbonisation by ensuring the emissions reduction goals of the UK’s carbon pricing policy are met without unduly damaging the competitiveness of UK businesses.

While we have a good level of detail published by BEIS this week, full guidance to advise businesses of their compliance obligations within the UK ETS will be released by the newly established UK ETS Authority in early 2021 alongside additional guidance for small and ultra-small emitters as well as a Hospital Opt-Out Scheme.

UK Carbon Market
EU ETS will be replaced by the new UK ETS on 1st January 2021

Which sectors are covered under UK ETS?

As with the EU scheme it replaces, the UK ETS will apply to energy intensive industries, the power generation sector and aviation. It will cover activities involving combustion of fuels in installations with a total rated thermal input exceeding 20MW (except in installations for the incineration of hazardous or municipal waste). The UK ETS will also include all UK domestic flights, flights between the UK and Gibraltar, and flights departing the UK to European Economic Area states conducted by all included aircraft operators, regardless of nationality. All businesses that carry out an activity covered by the UK ETS will need a greenhouse gas emissions permit and may also need a small emitter or hospital permit or an emissions monitoring plan.

Cap and Trade Methodology

The UK ETS will work on the ‘cap and trade’ principle as with the EU ETS, where a cap is set on the total amount of certain greenhouse gases that can be emitted by sectors covered by the scheme. This limits the total amount of carbon that can be emitted and, as it decreases over time, will therefore make a significant contribution to how the UK meets its Net Zero 2050 target. The scheme is designed to be more ambitious than the EU system it replaces as the cap on emissions allowed within the system will be reduced by 5% annually compared to the EU ETS annual reduction factor of 2.2%, with the cap starting at 155m tonnes in 2021 and falling to 117.5m tonnes by 2030.

Within this cap, participants receive free allowances and/or buy emission allowances at auction or on the secondary market which they can trade with other participants as needed. Each participant’s free allocation will be published in an allocation table soon after 1 January 2021. Stationary operators will also be required to submit verified Activity Level Reports by 30 June in 2021, and by 31 March each year after that. If data contained in these reports show an increase or decrease in activity of 15% or more, the operator’s free allocation will be recalculated in line with this change.

Emissions Trading Registry

As with the current EU ETS scheme, a UK Emissions Trading Registry has been developed for the UK ETS and participants require an Operator Holding Account (OHA) in the UK ETS Registry to acquire and surrender allowances in line with their obligations. Once a scheme participant has been issued a permit or emissions monitoring plan, the regulator will instruct the Registry Administrator to open an OHA on their behalf. They will then be contacted by the Registry Administrator and asked to provide details of a primary contact as well as authorised representatives to operate the OHA. Further information on onboarding will be provided in early 2021. It is this registry that will be used for businesses to submit UK Allowances (UKAs) ahead of the first compliance deadline in April 2022.

Market Auctions

Auctions will continue to be the primary means of introducing allowances into the market and participants will also be able to trade UKAs on a secondary market, with confirmation this week that the Intercontinental Exchange (ICE Futures Europe) will provide the auction platform and secondary market services under the UK ETS until December 2022 with an auction calendar to be published early next year. Despite the scheme officially launching on the 1st January 2021, auctions for the UK ETS are not likely to commence until some point in the second quarter of 2021, although ICE is working to start auctions as soon as feasible subject to regulatory approval. Unlike the EU ETS, the UK ETS will have a £15 Auction Reserve Price which establishes a floor price for which allowances can be sold at auctions. In addition, there will also be a cost containment mechanism providing a mechanism for BEIS to manage any significant price spikes in the market.

EU ETS obligations for the 2020 scheme year

During the Brexit transition period from 1 February to 31 December 2020, the UK remains a full participant in the EU ETS. This means that all UK businesses that currently participate in the EU ETS must continue to comply with their EU ETS obligations for the 2020 scheme year. The deadlines for UK operators participating in the EU ETS during the transition period are:

  • 31 March 2021 – submit Verified Annual Emissions Report for 2020 emissions
  • 30 April 2021 – surrender equivalent allowances to 2020 verified emissions

Potential price implications for UK businesses

The UK ETS has been purposely designed to mimic the current EU carbon market it will replace to reduce the administrative burden on UK businesses. However, as the UK carbon market will be much smaller than its EU counterpart (covering just 155m tonnes of emissions p.a. in 2021 compared to the EU market of 1.57b tonnes), there is a significant risk of high volatility and price spikes in the early months of the scheme due to poor market liquidity. The delay to fully functioning auctions until Q2-21 could also lead to a significant supply-demand imbalance in the early months of the scheme. Some analysts also doubt whether financial players will be attracted to participate in the scheme given its smaller scope and artificial floor price mechanism curtailing speculative opportunities, further harming liquidity. In the long term, questions also remain as to whether the UK scheme will continue as a standalone market or seek to align itself with other global carbon markets as part of post-Brexit trade negotiations to ensure a level competitional playing field, be it the EU arrangement it replaces or similar carbon reduction schemes in the US or Asia.

Unsure of the impacts on your business?

If you would like more details or to discuss the effect of these changes on your operations, get in touch. Call 0800 054 2577, email savings@envantage.co.uk or use our Contact Us page.


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Ofgem

Ofgem’s Targeted Charging Review – What does it mean for energy users?

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Ofgem’s recently-announced Targeted Charging Review will change the way the electricity networks recover charges. The aim of the review is to spread the cost of maintaining the electricity grid more evenly across business and households, and to modernise the UK’s electricity network.

Ofgem

The changes will apply from 2022, which is earlier than many energy users were expecting, and might mean that changes to your electricity charging will affect how you plan your energy use.

What are the most important changes?

Triad charges will be replaced by a fixed charge system. This will be a more simple method of collecting residual charges for the energy sector overall, with a fixed charge, irrespective of business size or location.

This will be put in place from 1st April 2022, but it is recommended you review your load management strategy now.

How will this affect your energy charges?

How these changes affect your business depends on how you currently use electricity.

If you are a large energy user who has used load management to avoid Triad charges, you will not benefit from lower charges as a result of this any longer. Some large energy users who have used embedded generation to export electricity to the Grid during Triad periods will also lose the benefits that this has given in past years. In these cases, you are likely to see charges increase.

If, on the other hand, your business is a large energy user but is not able to load manage at Triad periods, your electricity costs may reduce thanks to the overall costs being more evenly spread amongst users.

Half-hourly metered supplies will be charged based on their Agreed Supply Capacity (ASC) and voltage level. Smaller business energy users, with no specific Agreed Supply Capacity (ASC), will join charging bands based on their volume of consumption.

What Should You Do To Prepare?

While the justification for load management is largely removed by these changes, it is important that your business understands how it will be affected.

If you have become used to reducing your load during times of peak demand, there is an opportunity to review your energy use and identify whether your site can operate more efficiently under the new arrangements.

To assess your opportunities or threats from this important change, contact Envantage today for detailed advice, relevant to your specific situation. Call us on 0800 254 0577 or email savings@envantage.co.uk.


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UK Government Confirms UK Emissions Trading Scheme to Replace EU ETS

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The UK Government and the devolved administrations for Scotland and Wales have announced that a new UK Emissions Trading Scheme (ETS) will replace the UK’s participation in the EU ETS from 1st January 2021.

BEIS

In a communication from the Environment Agency’s Emissions Trading Team, Envantage learned this morning that the new scheme has been established to increase the climate ambition of the UK’s carbon pricing policy, whilst protecting the competitiveness of UK business.

The UK ETS will “apply to energy intensive industries, the power generation sector and aviation, ensuring continuity of coverage with the EU ETS.”

If your operation falls under EU ETS now, new permits will be issued for the new UK ETS in two stages, which are planned to be completed in early 2021. This will be accompanied by guidance, with the Aviation sector expecting more information in the coming days, and a How To Comply guide being published in early 2021 alongside more detailed information for sites which may be able to opt out etc.

An overview of this, alongside other initiatives announced by UK Government following the Climate Ambition Summit this weekend, can be seen by following this link.

Envantage Ltd will be in touch with all our clients involved in this important scheme, but if you have any queries at all about your energy use and the regulations that apply to it, contact us today.


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Envantage’s Team Strengthened By Experienced Energy Consultants

Envantage has recruited two highly experienced Energy Consultants to add strength and depth to its Compliance and Sustainability services.

Russell Monkman joined us in 2018 and is already working with our clients to safeguard regulatory compliance and secure financial rewards. Russ has a vast experience of energy compliance and sustainability, both as an end-user and as a consultant working for businesses in a huge range of sectors.

Russ is a member of the Energy Institute, a Chartered Energy Manager and ESOS Lead Assessor, bringing a wealth of experience and technical knowledge to reinforce our growing team of energy and low carbon specialists.He also holds ISO 50001 Lead Auditor status.

In addition to his proven skills in the execution of ISO 50001 audits, Russ was shortlisted for the Industry Expert category at the 2018 TELCA awards. He has set up EU Emissions Trading Scheme permits, taken part in audits and to verify emissions and made submissions to ETSWAP for clients. He brings more than 30 years’ experience in carbon and energy management, compliance, technical services and the chemicals industry. Russ also has a degree in Electrical Engineering and is a respected and prolific speaker and blogger on a wide range of environmental and energy management topics.

Russ began dealing with energy in the Chemicals sector at Ciba Clayton, looking after their huge site just outside Manchester. Following that experience, he joined a local energy consultancy to help them broaden their energy offering. Since then, Russ has helped hundreds of organisations to obtain, maintain and protect compliance with the various energy schemes throughout the UK. He has also identified countless thousands in savings opportunities with his experienced, practical approach to spotting energy waste.

Michael Holness also brings a wealth of experience, gained in a number of consultancy roles with clients across a wide range of sectors. Mike joined Envantage in early 2019 after spending the last 15 years helping organisations to manage compliance and identify financial savings. Mike is also an ESOS Lead Assessor with the Energy Managers Association.

Mike has worked at major energy consultancy firms, delivering ESOS energy assessments and managing Climate Change Agreements for clients. He also has experience of relevant ISO schemes and the EU Emissions Trading Scheme, as well as implementing Automated Monitoring and Targeting on client sites.

Both Russ and Mike bring an enormous breadth and depth of experience to the Envantage team, enabling us to identify and secure savings for more clients and sites and to offer a more hands-on service to our existing customers.

Envantage was incorporated in April 2004 by experienced professionals within the energy supply industry with a vast knowledge of energy efficiency, energy legislation and energy procurement. We have developed our team over the years, building an impressive range of energy management and carbon reduction services. This has been achieved by recruiting highly capable experts in their related fields, like Russ and Mike.

Our stronger team can help your business to achieve more secure savings and to identify opportunities to spend less money on your energy. Contact Us Today for more details.


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What a year! Here is why we are celebrating 2016…

 

We have had quite the year here at Envantage and would like to congratulate our staff on their continued outstanding work – and our clients on their substantial savings and performance improvements.

Some of our 2016 highlights include:

Envantage achievements 2016

> Claiming over £400k/yr in relief for some manufacturers

> Boosting our clients’ CDP scores to beat the CDP average

> Helping a textiles firm pass a challenging CCA audit (saving £200k+/yr)

> Securing major EU ETS compensation for a complex client case

> Managing 500+ GWh/yr for Climate Change Agreements

> Reporting on up to 34% energy savings with our ENMAT M&T system

> Reviewing ESOS in the Energy Institute’s flagship magazine

> Sharing CCA expertise with the Food & Drink sector in Birmingham

> Commissioning our 2.4MWp Solar PV park

> Being nominated for the “Energy Management Champion” TELCA Award

> Obtaining ISO14001 and ISO50001 certified status, alongside ISO9001

> Cutting our carbon footprint with hybrid electric vehicles

> Welcoming two babies (with one still on the way!)

…and much more!

 

2017 looks set to be another eventful year, with valuable energy and carbon opportunities.

Once you have celebrated and reflected on the past 12 months, we recommend that you schedule a call with us in January.

 

How Envantage can help

We look forward to reducing your costs, improving your energy and carbon performance, and boosting your brand value in 2017.

To set up a consultation, simply contact our team on 0800 054 2577 or email savings@envantage.co.uk.

Have a wonderful holiday.

Envantage-2015-Logo-Small-100-trimmed


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Top Safety Accreditation for Envantage Ltd

 

Manchester-based Envantage Ltd has been awarded continued accreditation from Safecontractor for its commitment to achieving excellence in health and safety.

Safecontractor is a leading third party accreditation scheme which recognises very high standards in health and safety management amongst UK contractors.

Operating throughout the UK, Envantage helps organisations to manage their energy and carbon reduction more effectively through a comprehensive portfolio of services. The company’s clients include major players such as JD Williams, McBride and Arnold Clark as well as many well-known local companies and industries across the country.

The company’s on-going Safecontractor accreditation is driven by dedication to a uniform standard across the business.

“We are known for our high quality work, in areas such as Climate Change Agreements, energy compensation schemes for industry, energy audits, and M&T” noted Colin Hindmarsh, Managing Director at Envantage.

“Our Safecontractor accreditation shows that this quality also extends to our approach to health and safety”.

Safecontractor enhances the company’s ability to support high profile clients as well as win new contracts. Its commitment to safety will be viewed positively by its insurers when the company liability policy is up for renewal.

The scheme is applicable to most sectors although it is particularly relevant to food manufacture, property, facilities management, retail and leisure sectors, all of which are big users of contracted services.

John Kinge, technical director of Safecontractor said, “Major organisations simply cannot afford to run the risk of employing contractors or consultants who are not able to prove that they have sound health and safety policies in place.”

“More companies need to understand the importance of adopting good risk management in the way that Envantage has done. The firm’s high standard has set an example which hopefully will be followed by other companies within the sector.

Safecontractor plays a vital role in supporting our clients in meeting their compliance needs, whilst working with their contractors as they progress through the accreditation process.”

Under the Safecontractor scheme, businesses undergo a vetting process which examines health and safety procedures and their track record for safe practice. Those companies meeting the high standard are included on a database, which is accessible to registered users only via a website.

Client-organisations who sign up to the scheme can access the database, enabling them to vet potential contractors before they even set foot on site. These clients agree that, as users of the scheme, they will engage only those who have received accreditation.

Over 210 major nation-wide businesses, from several key sectors, have signed up to use the scheme.


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Over £400k/yr relief now claimed for some manufacturing clients

Claim RO and FIT Compensation with Envantage
Envantage has successfully claimed back as much as £440,000 for some clients on annual electricity costs, via the UK government’s relief for electricity intensive manufacturers.

Eligible businesses can save approximately 1.7p/kWh with RO and FIT compensation alone.

The relief is designed to protect the international competitiveness of UK industry, by discounting extra charges on energy bills that are related to the government’s carbon emissions targets.

“It is clear that the financial benefit can be among the most substantial in energy and carbon management at present,” noted Colin Hindmarsh, Managing Director of Envantage Ltd.

If you are eligible you should therefore make the most of this opportunity.

 

Two key facts about compensation

Firstly, RO & FIT compensation now cannot be backdated. This means that you lose out while you delay to claim.

Manufacturers should therefore find out immediately if they qualify. Envantage welcomes enquiries, and will help you identify what relief you are entitled to.

Secondly, you will need resources and expertise to submit a successful claim and comply with the reporting requirements.

Speak to Envantage today to find out how much our effective services will save you. Many manufacturers find that they are unable to act swiftly on their own, due to delays and costs when developing necessary in-house skills and tools.

 

How Envantage can help

We already assist manufacturing clients to obtain an average of over £200,000 per year, using our extensive experience with evidential data and energy reporting – and over £400,000 per year in individual circumstances, as reported above.

Additional benefits of working with our dedicated team include the assurance of complete evidence packs, audit services, and ongoing support.

To get started, and take your first step towards securing your RO and FIT compensation, please call Envantage on 0800 054 2577 or email savings@envantage.co.uk.

Envantage-2015-Logo-Small-100-trimmed

Tel: +44 (0) 800 054 2577
Email: savings@envantage.co.uk


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Envantage at TELCA Awards 2016 – Energy Management Champion nomination

Energy and carbon consultancy Envantage are proud to have been nominated for a TELCA Award, in the Energy Management Champion category.

The Envantage team celebrated with the rest of the energy industry at the award ceremony held on 30 June at the Honourable Artillery Company in London.

Now in their fourth year running, the prestigious TELCA awards promote excellence in the energy sector.

Being shortlisted for the Energy Management Champion award reflects Envantage’s comprehensive range of energy management services, offered alongside compliance, carbon and water management, procurement, and administration of energy discount schemes for manufacturers.

The TELCA Awards 2016 shortlist and winners can be viewed here. Envantage would like to congratulate all nominated businesses, and the winners of each category.

 

How Envantage can help

Envantage’s energy management services include the three essential foundations, with support from our experienced Chartered Energy Managers:
energy management systems (ISO 50001)
staff awareness training
monitoring and targeting

To get started, contact us today.

Envantage-2015-Logo-Small-100-trimmed

Tel: +44 (0) 800 054 2577
Email: savings@envantage.co.uk


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Envantage publishes expanded business brochure

Envantage has published an expanded business brochure, showcasing additional ways in which the company is now helping clients cut costs, energy and carbon.

The updated business brochure can be downloaded pdf_iconhere.

Expanded services include:

 

 

Please contact Envantage today to find out how we can assist your business.

Envantage-2015-Logo-Small-100-trimmed

Tel: +44 (0) 800 054 2577
Email: savings@envantage.co.uk


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Envantage shortlisted for energy management TELCA award

Energy and carbon consultancy Envantage have been shortlisted for a TELCA Award 2016, in the Energy Management Champion category.

The winner will be announced on 30 June at the awards ceremony held at the Honourable Artillery Company in London.

Now in their fouth year running, the prestigious TELCA awards promote excellence in the energy sector.

The nomination for Energy Management Champion reflects Envantage’s comprehensive range of energy management services, offered alongside compliance, carbon and water management, procurement, and administration of energy discount schemes for manufacturers.

The TELCA Awards 2016 shortlists can be viewed here. Envantage would like to congratulate all nominated businesses, with best of luck for the awards ceremony.

 

How Envantage can help

Envantage’s energy management services include the three essential foundations:
energy management systems (ISO 50001)
staff awareness training
monitoring and targeting

Our experienced Chartered Energy Managers also carry out energy audits to ISO 50002 standard (for ESOS and other purposes), consult on renewable energy technologies, and provide energy efficiency project services ranging from LEDs to energy saving process equipment.

To get started, contact us today.

Envantage-2015-Logo-Small-100-trimmed

Tel: +44 (0) 800 054 2577
Email: savings@envantage.co.uk


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