SMMT helps manufacturers to big savings through energy reduction

27 January 2014 #SMMT News

Automotive manufacturing companies in the UK can save thousands of pounds every year by committing to reduce their environmental impact.

By signing up to SMMT’s Climate Change Agreement (CCA), firms can obtain significant discounts on the Climate Change Levy (CCL) – a tax on the use of energy in business.

CCAs were first introduced in 2001 to support manufacturers in the face of the then-new CCL, and were revised last year. Companies with processes eligible to SMMT’s CCA – such as plastic injection moulding, painting, press-shops and surface treatment of metals – can get a 90% discount on the CCL rate for electricity usage and 65% off the levy for gas.

A typical supply chain company in SMMT’s CCA saves over £50,000 per annum in CCL discount, with some saving over £200,000.

There is a proviso: to receive the discount, CCA participants must deliver a reduction in energy usage of at least 15% by 2020.

The joining fee for SMMT members is £2,500 + VAT per annum, while for non-members, 5% of savings over the CCL is added to the cost

SMMT offers a comprehensive service for its part, and will assist with:

  • determining eligibility and joining the scheme
  • compliance and reporting progress
  • other areas of business relating to greater energy efficiency, reduced energy costs and enhanced competitiveness.

To find out if your business is eligible to join our CCA, and for information on how to apply, click here.

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