The FSDF Climate Change Agreement provides members with a discount on the Climate Change Levy by meeting government-agreed energy efficiency improvement targets.
The initial Climate Change Agreements (CCAs) were 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 have been introduced. Eligible participants to the FSDF CCA scheme now receive up to a 90% discount on the CCL on electricity and up to a 65% discount on gas CCL in return for meeting an 11.7% reduction in energy use between 2008 and 2020.
In the temperature controlled storage sector, companies will have to monitor, measure and report on their power consumption and cold storage volume at the sites that have a CCA. Details of site location, production processes and site plans will also need to be compiled.
Members are contractually committed to the provision of energy and production data on an annual basis to measure performance against the agreed FSDF CCA target (11.7% reduction between 2008 and 2020). Jacobs (previously SKM Enviros), the administrator of the FSDF scheme, will review your CCA application, provide support via a helpline and will collate and sense check the annual CCA reporting submissions from the company. Members will continue to claim the CCL discount, but if they fail to achieve target reductions they will need to purchase equivalent amounts of carbon, currently costing £12 per tonne, rising to £14 per tonne in Target Period 3 (for any failing target units, this increased buy-out would be required in July of 2019)
Here is how the FSDF CCA works:
Member companies already provide power consumption from half hourly meters against cubic capacity for stand-alone storage and distribution facilities – stand-alone in the respect that they are not allied to a production or processing plant. Each site will be measured and calculated individually, although a number of sites can be ‘bubbled’ together to enable a degree of ‘trade off.’
To qualify for full CCL discount, sites must pass a 70:30 rule by which at least 70% must be related to the eligible process and the balance for ancillary use on the same site. Once a site is accepted into the FSDF CCA scheme then it will fall into one of three FSDF CCA fee bands dependent on its consumption / output. Each site pays an annual fee to the EA (£185) which we collect and pass on without added margin.
- Band A = between 1 and 999,999 kWh per annum
- Band B = between 1,000,000 and 9,999,999 kWh per annum
- Band C = Over 10,000,000 kWh per annum.
The FSDF CCA fee structure is in three parts:
- An annual administration fee by the EA (£185)
- A year 1 Joining Fee based on the site specific power consumption.
- An annual subscription based on the site specific power consumption.
By joining the FSDF as a Full Member an organisation would be entitled to a 50% reduction on the annual CCA subscription fee.
Subscribe to our Climate Change Agreement (CCA) to receive up to 90% reduction in the Climate Change Levy if your company commits to energy efficiency targets agreed with government