Climate Change Levy (CCL) charges are set to rise again in April 2019, which means even organisations with a Climate Change Agreement (CCA) in place are likely to see an increase in energy bills.
As announced in the spring 2016 Budget, the Carbon Reduction Commitment scheme (CRC) will run until the end of the 2018-19 compliance year, when phase 2 concludes. Businesses will be required to submit their last CRC report by July 2019 and to surrender allowances for the final time in October 2019.
The government wants to end what is a complex, bureaucratic and costly scheme and streamline the business energy tax landscape, by moving to a system where businesses are only charged one energy tax, so allowances will be replaced by an increase in CCL from April 2019.
This could be as much as 45% for electricity bills and a punishing 67% for natural gas – but thanks to the Min-Met CCL Exemption Scheme, manufacturers in mineralogical and metallurgical industries can qualify for total CCL exemption.
How the Min-Met CCL Exemption Scheme works
Since 2014, the Min-Met CCL Exemption Scheme has existed to ensure that businesses operating in these energy intensive industries are not unduly punished by CCL and are able to continue to compete not just in the UK, but internationally.
However, many qualifying businesses still have not yet claimed their exemption – and could stand to benefit substantially by submitting a backdated claim for the four years of the Min-Met Exemption Scheme up to now.
Even if you have not previously made use of the scheme, with the end of the CRC in sight and an increase in CCL charges set to take over from it, there has never been a better time to make a first backdated application and start saving for the years ahead.
How Envantage can help you
Envantage can help you to verify that you are eligible for the full CCL exemption and submit your claim, allowing you to:
- Claim 100% exemption from CCL under the Min-Met Exemption Scheme.
- Claim back up to the past four years’ exemptions since the scheme’s introduction in 2014.
- Avoid costs arising from carbon buy-outs and additional fees.
We will of course ensure that you are eligible for the Min-Met scheme, and this is based on standardised NACE codes.
For mineralogical businesses, that means manufacturing that falls under NACE Division 23, including ceramics.
For metallurgical firms, it includes NACE (rev 2) Division 24, 25.5 and 25.6, which covers casting iron and steel, light metals and non-ferrous metals.
There are further rules to assess qualifying energy usage outside of these areas, which requires formal documentation, but no more carbon reduction targets to satisfy within the exemption scheme after that.
Should I use the Min-Met CCL Exemption Scheme?
If you are eligible, we can help you to decide if the Min-Met CCL Exemption Scheme is the best solution for you.
You can replace any existing CCA with membership of the scheme; or alternatively, you can join the scheme while still retaining a CCA in place, giving you good flexibility of options.
Envantage have highly qualified staff with the knowledge, expertise and economic awareness to calculate the net financial benefits of the different options, so you know which makes most sense for your bottom line.
Initial enquiries are no-obligation and we will support you through every step of the process, from compiling your data to obtaining full membership and a 100% exemption from CCL.