Applications from new entrants wanting to join CCA

21/05/2018

The rules of the Underlying Agreement do not allow us to add a facility to an umbrella agreement or underlying agreement in the final two months of any target period or during the whole of the final Target Period

What this means in practice is that we need to have received your application (with all relevant supporting evidence) in sufficient time for us to be able to:

  • determine the application
  • issue the proposed underlying agreement
  • receive the operator’s assent to the proposed underlying agreement
  • issue the final approved underlying agreement

and all of this needs to be completed by 31 October 2018.

One of the recommendations of the Penfold Review report is that applications should be determined within 13 weeks of submission.  Working this backwards from the October deadline means that we would expect to receive applications on the CCA Register by 31 July 2018 at the latest. Whilst we will endeavour to assess applications received after this date, we cannot necessarily guarantee these and there is a subsequent risk that operators may not be able to claim relief on the Climate Change Levy.                          

Taking into account any time needed for Sector Associations to review the information provided by operators and enter the relevant details into the CCA Register. We would recommend you advise the operators you represent to submit their applications for new entrants by the 30 June 2018.

Reissue of underlying agreements

On the 10 May 2018 we re-issued an updated version of the Underlying Agreement to all operators who haven’t had a variation to their existing agreement since January 2017.  This version of the Underlying Agreement amends the rules setting out how the buy-out fee will be calculated for the third and fourth Target Periods, i.e. using the higher rate of £14/tCO2e compared to £12/tCO2e that applied for the first and second Target Periods. 

The change to the rules was first notified via a variation notice sent directly to all operators on the 30 December 2016.  The reason for re-issuing the underlying agreement is purely to consolidate this change into the agreement itself.

There is no requirement for an operator to provide their assent to this re-issued underlying agreement, nor to provide updated information to energy suppliers/HMRC, unless there has been any relevant changes to this.  (The letter accompanying the Underlying Agreement is a standard template letter.)

Following the re-issue, a relatively small number of “undeliverable email” replies were received for some of the Responsible Person/Administration Contract email addresses used by the CCA Register to send these.  We will be contacting the relevant Sector Associations to validate email contact details in due course.  Could all Sector Associations please ensure that the email addresses assigned to Target Units are correct and kept up to date?  This is critical to ensure that all notices, including the Underlying Agreement, can be served correctly.