Compliance and Exemptions

What are Compliance and Exemptions?

Energy compliance is a critical aspect of operating in today’s business environment. It involves adhering to laws and regulations that govern energy usage, greenhouse gas emissions, and environmental impact. Our team stay up-to-date with the latest regulations, ensuring that our clients remain compliant and avoid any potential penalties or legal issues.

Exemptions can provide relief from certain taxes, levies, or fees associated with energy consumption. Our knowledgeable team can guide you through the complex landscape of exemptions, helping you identify and take advantage of the opportunities available to your business.

Our services extend beyond compliance. We provide ongoing support, keeping you informed of any regulatory updates or changes that may impact your operations. We will proactively guide you through the evolving energy landscape, so that your business remains at the forefront of sustainability practices.

What are the benefits of Compliance and Exemptions?

Industry Compliance

We can help you check that you are complying with all industry regulations.

Cost Savings

We will work efficiently to avoid incurring any penalties or charges for missing completion deadlines.

Sustainability

We are committed to empowering your business to optimise energy usage and contribute to a more sustainable future.

Min-Met

The UK government offers a number of exemptions from the Climate Change Levy (CCL) for businesses that use energy for mineralogical and metallurgical processes. These exemptions are designed to support the UK’s transition to a low-carbon economy by encouraging businesses to use more efficient and sustainable energy sources.

Mineralogical processes: These are processes that involve the extraction or processing of minerals, such as mining, quarrying, and mineral processing.
Metallurgical processes: These are processes that involve the extraction or processing of metals, such as smelting, refining, and casting.

Energy Savings Opportunity Scheme (ESOS)

ESOS requires large businesses and non-public sector organisations to undertake energy audits every four years. These audits assess the organisation’s energy consumption, identify cost-effective energy-saving opportunities, and make recommendations for improving energy efficiency.

The scheme aims to encourage energy efficiency and reduce greenhouse gas emissions by raising awareness of energy consumption, promoting energy-saving measures, and identifying areas for improvement. It helps organisations uncover potential energy savings, optimise energy use, and reduce operating costs. Participants in ESOS are required to notify the UK Environment Agency of their compliance, which involves submitting their energy audit findings and associated reports. Failure to comply with the scheme can result in financial penalties.

Streamlined Energy and Carbon Reporting (SECR)

Under SECR, qualifying organisations are required to include their energy consumption, associated greenhouse gas emissions, and energy efficiency measures in their annual Directors’ Report.

SECR is designed to encourage organisations to assess their energy usage, identify opportunities for improvement, and report on their emissions. By increasing transparency and accountability, SECR aims to drive energy efficiency, carbon reduction, and sustainability practices among businesses.

Climate Change Levy (CCL)

The primary objective of the CCL is to incentivise energy users to reduce their energy consumption and carbon emissions. The tax rates are structured in a way that encourages businesses to improve their energy efficiency and shift towards low-carbon alternatives. This can be achieved through measures such as implementing energy-saving technologies, optimising processes, or using renewable energy sources.

Exemptions and reduced rates are available for businesses in specific sectors that are deemed energy-intensive or trade-exposed. Additionally, businesses that participate in certain government-backed energy efficiency schemes, such as Climate Change Agreements (CCAs) or the Carbon Reduction Commitment (CRC), may receive discounts or exemptions from the CCL.

Did You Know...

The British Thermal Unit (BTU) is a unit of measurement commonly used to quantify energy. It represents the amount of energy required to raise the temperature of one pound of water by one degree Fahrenheit at sea level.