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KEY FACTSon ENERGY EFFICIENCY
- The Climate Change Levy (CCL) represents between 11% and 13% to the average non-domestic fuel bill
- Energy used, not cost, forms the basis of the Climate Change Levy – the only way to reduce the effect is to reduce fuel consumption.
- Some trade sectors have signed to Sector Agreements, whereby they agree to reduce energy consumption and pay up to 80% reduced CCL. All companies having agreements have to find ways of reducing energy consumption.
- Most energy surveys identify 10% or more savings that can be achieved at no cost or minimal cost
- Many energy surveys find further savings involving some capital investment, giving a total of 20% or higher
- It costs nothing to have energy surveys by an approved consultant – under the Carbon Trust schemes, the government pays.
- Equipment and plant upgrades – you can replace and upgrade equipment that has an identifiable return with the benefit of the Enhanced Capital Allowances Scheme (ECA). This gains 100% first year tax allowances on specified equipment, (such as lighting, variable speed drives, energy efficient boilers and motors) – to companies this is equivalent to about 5% reduction in first cost .
Added benefits of energy conservation:
- Playing your part in reducing global warming
- Public relations – the aims, achievements and results can be publicised to the advantage of green image and both customer and shareholder perception
- Operational improvements – improved energy efficiency often means improved operator efficiency also.