Food Storage and Distribution Federation (FSDF) is urging companies with cold storage sites who haven’t yet joined a Climate Change Agreement (CCA) scheme to do so quickly, as the last window of opportunity for applications ends in July 2018, and won’t reopen again until the end of the current scheme in 2023.
The initial Climate Change Agreements (CCAs) were first introduced in 2001 by the government of the time to ensure the continued competitiveness of UK energy-intensive sectors and ran to March 2013. From 1st April 2013 newly negotiated CCAs were introduced, with eligible participants to the FSDF CCA scheme receiving up to a 90% discount on their electricity Climate Change Levy (CCL) and up to a 65% discount on gas CCL.
In order to qualify for the discounts in the temperature controlled storage sector, companies that are part of the CCA scheme have to monitor, measure and report on their power consumption and cold storage volume on an annual basis to measure performance against the agreed FSDF CCA target of 11.7% reduction in energy usage between 2008 and 2020.
Companies must also meet specific eligibility criteria, which states ‘an installation (which must be a building where the predominant business activity is commercial temperature controlled storage or product freezing) or site upon which there is such an installation where; (a) products are cooled or frozen for the purposes of (i) storing them under controlled temperatures below ambient levels; or (ii) producing ice; or (b) products are stored under controlled temperatures below ambient levels, cooling and freezing products and all processes and activities involved in controlling temperatures below ambient levels’. To find out more about eligibility criteria go to www.fsdf.org.uk/about-us/cca/
Chris Sturman, CEO of FSDF said: “We’re delighted that our members who are part of the CCA have shown some excellent results in energy efficiency over the duration of the scheme, which is undoubtedly great news for the environment but also great news for the industry and for businesses who are reaping the financial benefits from the reductions to their CCL charges.
“The CCA scheme has been saving companies money for many years now, and provide finance for further energy efficiency and carbon reduction. We are urging those who haven’t yet signed up to do so as the deadline is looming. Recently, the government’s Business, Energy and Industrial Strategy (BEIS) has reported they won’t be reviewing the CCA target this year so the 2020 target is remaining 11.7%,which is good news because the buy-outs are not impacted and the data that is required will remain the same.
“By joining the FSDF as a Full Member an organisation would be entitled to a 50% reduction on the annual CCA subscription fee. Once signed up and approved as part of the FSDF’s CCA scheme, in return for meeting energy efficiency targets you will receive up to 90% reduction in the Climate Change Levy if your company commits to energy efficiency targets agreed with government, and will be able to apply for a rebate on any CCL charged.”
