The Budget 2014

  • -

The Budget 2014


Energy and carbon taxes

  • 2.162 Carbon price floor (CPF) reform –The government will limit the difference between the carbon price implied by the CPF and the EU allowance price to £18/tCO2 from 2016-17 to2019-20. The CPF trajectory will remain unchanged. However, where this leads to a UK-only
  • Carbon Price Support (CPS) rate of more than £18/tCO2, the CPS rate will be capped at £18/tCO2. The CPS rate for 2016-17 will therefore be set at £18/tCO2. The government will review the CPF trajectory for the 2020s, including whether a continued cap on the CPS rate might be necessary, once the direction of reform of the EU Emissions Trading System is clearer. (Finance Bill 2014) (25)


  • 2.163 CPF: exemption for Combined Heat and Power (CHP) – The government will exempt fuels used to generate good quality electricity by CHP plants for onsite purposes from the CPF, from 1 April 2015. (Finance Bill 2015) (26)


  • 2.164 CPF: technical changes –As announced in December 2013, the government will amend the rate for coal and other fossil fuels for 2014 15 and 2015-16. The government will also make kerosene used in electricity generation liable to tax from 1 May 2014. (Finance Bill 2014)



  • 2.165 Climate change agreements: sawmilling – The government will admit the sawmilling sector into the climate change agreement scheme by the end of 2014.


  • 2.166 Climate Change Levy (CCL) main rates – CCL main rates will increase in line with RPI from 1 April 2015. (Finance Bill 2014)



  • 2.167 CCL: exemption for metallurgical and mineralogical processes – The government will introduce exemptions from the CCL for energy used in metallurgical and mineralogical processes from 1 April 2014. (Finance Bill 2014) (27)

Stay informed: Subscribe

Energy Compliance updates from Envantage Ltd

* indicates required

Please confirm that you would like to hear from Envantage Ltd:

You can unsubscribe at any time by clicking the link in the footer of our emails.