Why CCL (Climate Change Levy) is Increasing

Why Is CCL (Climate Change Levy) increasing?

Depending on your supplier you may or may not have been advised yet about the increases in CCL that comes into effect on 1st April 2019.

Climate Change Levy (CCL) was originally set up as a form of taxation to encourage the more efficient use of energy and thereby reduce carbon dioxide emissions. This year’s increase represents the biggest increase seen since the introduction of the tax in 2016 as demonstrated in the table below.

Climate Change Levy main rates

Taxable commodity Rate from 1 April 2016 Rate from 1 April 2017 Rate from 1 April 2018 Rate from 1 April 2019
Electricity (£ per kilowatt hour (KWh)) 0.00559 0.00568 0.00583 0.00847
Natural gas (£ per KWh) 0.00195 0.00198 0.00203 0.00339
LPG (£ per kilogram (kg)) 0.01251 0.01272 0.01304 0.02175
Any other taxable commodity (£ per kg) 0.01526 0.01551 0.01591 0.02653

 

So why the huge increase?

To simplify the complex burden and administrative headache to users having at least 1 settled HH meter and using 6,000 Megawatt hours or more currently registered under CRC ( Carbon Reduction Commitment) it was announcement in the Budget 2016 that CRC would cease with the last report being submitted by the end of July 2019 and the final surrender of allowances in October 2019.  As CCL was already a simple form of taxation currently in place at this time measured on individual usage it seemed the most logical way to recoup the tax revenue lost by closing CRC .  Unfortunately, that now means all businesses will be eligible for the CCL increase and not just those that were registered under the current CRC obligation.

But why am I now paying a higher CCL charge when I never qualified for CRC payments?

Whilst some would argue that doesn’t seem fair, it is based on every businesses usage and therefore could be argued that this represents a lot fairer system, in the fact that larger users will be contributing the most based on their output usage and smaller users will be affected minimally.  CCL is purely a taxation for businesses, and this does not affect individuals and domestic use.

Definition of Domestic:

  • school and university residential accommodation for students and pupils
  • homes for the elderly and disabled
  • monasteries, nunneries, and similar religious communities
  • children’s homes
  • hospices
  • self-catering holiday accommodation
  • houses, flats or other dwellings
  • supplies to community heating schemes
  • armed forces residential accommodation
  • caravans
  • houseboats

Unfortunately this is an increase that will affect every business unless you fall into the exemption category of having Gas and Electricity supplies that are eligible to be charged at 5% VAT,  A Business using energy generated from renewable resources, A Business using electricity generated from qualifying CHP (combined heat and power)source, Businesses using energy in metallurgical and mineralogical processes.  In addition, if you have a CCA (Climate Change Agreement) in place then you will be eligible for discounts of up to 90% on electricity and 65% discount on gas of the CCL charge.

The best way to reduce your CCL charges is to reduce your consumption for your premises and to ensure you are aware of all charges when procuring your energy contracts. Monitoring your energy consumption is the starting point for an energy reduction program. If you would like further clarification on CCL or indeed would like to reduce your consumption either directly or in line with a CCA agreement, then please contact Flame UK on 0115 896 5460 and we can discuss various consumption reduction programs with you.

Our Guide to Wheelie Bin sizes

What’s the right bin size for my business?

Selecting the right bin for your specific requirements has just got a whole lot easier. Here at Flame UK we are asked regularly ‘What size bin do I need?’ or ‘How many bags can I get in my wheelie bin?’ well look no further, we have created a very handy guide to help you navigate much quicker.

As well as our guide to wheelie bin sizes we have also created a guide to the size of Front End Loaders (FEL) and Skips too.

Use our guide to make better decisions and select the right waste container for you.

If you need any help please do get in touch, call us or email us at sales@flameuk.co.uk

 

 

Choosing the Right Energy Contract

What type of energy contract should I have?

Energy is a necessity, and everyone must have it to operate their business.  It can be a big chunk of a business’s spend normally ranking within the top 3 expenses and needs to be reviewed effectively to ensure the business is not only on a competitive rate but also the right type of contract.

There are many types of businesses, consumptions, meters etc. across the industry which can contribute to how a decision is made and what contract is best. There are many factors to take into account like budgets, requirements, systems, and even political unrest i.e. Brexit for when a contract is agreed.

It is difficult to know what type of contract to go with due to the uncertainty of the market, however, if you can make informed decisions that are right for your business it helps to make the procurement process a lot easier.

The contract types are below and how they tend to work;

Fully Fixed

This is the most common and suits all business types looking for security and will have their prices fixed throughout the duration of their contract regardless of how long the contract length.  The suppliers build in an element of risk into the overall unit rates to ensure the rates are viable and sustainable.

This type of contract will protect you against any mid-contract price increases and provide full budget certainty for the duration of your contract. This does not necessarily mean your monthly payments will be fixed as this is determined by the kilowatts used.

Fixed (Partial Pass Through)

This works in a similar way to the fully fixed option however, the prices can be changed at any point if a certain threshold is met or there are extreme bullish movements within the wholesale markets. The thresholds/ terms will be set by a supplier as to when the prices change and any increased is passed on to you.  It is always recommended to get a firm understanding of exactly what has been set which can include any number of the third party charges and varies from supplier to supplier.

 

Pass-Through

Pass through contracts differ from the fully fixed/fixed options as it is only the duration and the wholesale commodity cost of the energy that is fixed with the remainder of the price (third party costs) being passed through to the end user at cost rather than the fully fixed contract as these charges are higher as there is a risk factor built in to them. With the pass-through contracts, the third-party charges as variable and can change at any time so there is only a commodity cost budget certainty for the business.

The passed through / third party are listed below and can vary from supplier to supplier;

  • AAHEDC – Assistance for areas with High Electricity Distribution Costs
  • BSUoS – Balancing Use of System charges
  • CM – Capacity Market
  • CfD FIT – Contracts for Difference Feed-In Tariff
  • DUoS – Distribution Use of System Capacity
  • DUoS – Distribution Use of System Excess Capacity
  • DUoS – Distribution Use of Systems Fixed
  • DUoS – Distribution Use of System Reactive Power
  • DUoS – Distribution Use of System Unit
  • FIT – Feed InTariff
  • Meter Rental
  • Metering & Meter Reading
  • RO – Renewables Obligation
  • TNUoS – Transmission Network Use of System

Flexible

Flexible contracts have become a more popular tool to manage risk in electricity purchasing.

Compared to a fixed contract which has the cost essentials locked in for the contract, including the commodity cost, a flexi contract doesn’t have the energy part included when the contract is signed.

Non-Commodity Costs can be Fixed or Pass-Through in a Flexible energy contract, but the energy pricing is done throughout the duration of the contract – you will always be supplied energy and you have the ability to set the price of your energy through trading. You can buy at times the market is looking favorable according to your knowledge/expertise.

This is typically for businesses on a very large scale who usually have a dedicated employee/department overlooking the whole operation.

There are many factors before agreeing on a flexi contract, the main ones you’ll need to decide are;

  • Duration
  • Portfolio management – you can add and remove meters.
  • Energy purchasing – Exactly how you are going to buy the energy
  • Non-energy costs – Fixed or Variable?
  • Billing

There are also deemed contracts/variable contracts or ultimately no contract in place at all which means typically you’ll be paying above market average prices for your energy and need to be looking to agree one of the above which will depend on your business type and energy purchasing strategy and adversity to risk.

Within each contract type, each supplier offers multiple variations and options, so it is important to have a strong knowledge of each suppliers’ products as you are unable to make an apple for apple decision without this.

Whatever the contract, our experts can help you – just call 0115 896 5460.

Christmas Recycler of the Year winner announced.

Flame UK and Grantham based Sports Charity, inspire+  announced the winner of their Christmas Card Recycling competition on Friday. Back in December, the two companies came up with an idea to encourage local schools to recycle their Christmas cards. Over 40 schools got involved and the school that collected the heaviest weight of cards would be crowned winner.

Flame UK collected all the recyclable cards and weighed them in to determine which school would win the coveted Christmas Recycler of the Year TrophyAfter a very close run competition, the overall winner for 2018 was Uffington Church of England School in Stamford who collected 80.5kg of cards.

Pam Knight, Managing Director of Flame UK said “We were thrilled to see how many schools got involved with the competition. It was an idea that inspire+ helped us come up with and the kids really got behind it. This is definitely something we want to continue every year from now on! Congratulations to Uffington School for collecting such a large amount of cards for recycling.”

Vincent Brittain, founder of inspire+ added “When Flame UK asked us to get involved with the Christmas Card Recycling competition, of course we agreed. It’s been a great way of getting schools to learn about recycling whilst also encouraging them to work together as a team which is a key part of the programmes we offer to schools.”

Flame UK and inspire+ will be running the Christmas Card Recycling project next year so if your school in interested in getting involved, watch this space for more information.

Ever Thought about Baling your Recycling?

If you have ever thought about Baling your recyclable waste but never took the ‘plunge’ then now could be the time to make that change.

With general waste costs rising constantly, landfill tax increasing year on year and impending ‘green taxes’ looming the rise in the value of recyclable materials could just be the nudge you needed.

Cardboard prices have fluctuated greatly over the past 12 months with China and the other Asia markets declining to take the UK’s waste having a big impact on the values. But with more and more demand for recyclable products, the market is in need of good quality recyclable materials, which, maybe you can help with.

Cardboard and Plastics can be baled in a range of balers to fit every application and every budget, starting from a few pounds a week we can quickly and efficiently turn your waste into cash.

The impending Plastic Tax will see buyers of plastic packaging having to make use of minimum recycled content products, which will create in turn a bigger need for more material, so too will the revamping of the Packaging Waste Regulations where a greater target for recycling will also place more pressure on demand.

Even if you just want to see how a baler could positively assist your business’s bottom line were here to help. Our range of waste balers and equipment is vast, from smaller balers for small volumes and office space to large commercial balers capable of handling tonnes of waste per hour, we have it all.

Call us and see how we can help.

 

Plastic Tax is coming, our Summary of the Consultation Document

Taxing those who create plastic waste is a hot topic, the UK Government has set its sights on business to set the standard and those who fall short will pay the price.

The Plastic Tax consultation documents that the UK government have published directly targets the companies who make use of difficult to recycle plastics. Making use of plastics with a less than 30% recycled content will attract a new tax, the Plastic Tax.

It is deemed that those who make use of plastics from recyclable materials will be either exempt or pay a lower tax.

Users of plastic packaging have for a long time now sought out recycled content packaging but not everything we handle is actually made from recycled materials, many everyday food packaging plastics are indeed from virgin materials, unrecycled content and how recyclable are they when we throw them away were not quite sure. Every household across the UK is throwing that material away leaving it in the hands of the local councils to recycle as much as possible.

Brand owners will now have to contribute to the costly collection and recycling of our household waste in this new hotly debated Plastic Tax.

One very clear sentiment from the consultation is to ensure your businesses packaging contains at the very least 30% of recycled material.

We still have some time until the Plastic Tax will affect us as the plan is to introduce the Plastic Tax in April 2022, until then we will keep our blogs updated with news and articles to help, please call us or email us for more information or a copy of our detailed summary of The Plastic Tax Consultation Papers.

If you would like more help and support to recycle more of your businesses waste then we can help, our recycling team has decades of experience across multiple industries, and waste types, we have UK disposal and recycling markets that are industry leading so speak with us today. On the phone, by email or read over our waste management web pages for more information.

The Deposit Return Scheme (DRS), How will it affect your business?

We have all heard so much about ocean plastics and the environmental impact of single-use plastics recently, one of the plans that the government is proposing is the introduction of a Deposit Return Scheme or DRS. The consultation paper released recently is outlining some of the ideas suggested to address the volume of drinks containers discarded by the public.

The plan is to place a levy on each container, the consumer would pay the levy when purchasing the item, that levy or deposit would be returned when the container is returned or recycled.

Little is known about the detail of the scheme, how deposits will be paid back or where recycling points will be sited. What we do know is that the DRS is a very likely option for the government to put in place, we don’t know exactly when but as soon as we get any more detail, we will be publishing out notes and thoughts and of course any help we can give we are always on hand.

What we can say with assurance is, watch this space for regular updates, we will constantly be assessing the Government’s proposal and will regularly post with updates and news. Keep coming back for the latest news.

Event Management By The Professionals

When your planning your event the waste management and litter picking is an important factor. Sure, it’s not as important as the style of the bride’s dress or the way the lead singer performs but this doesn’t stop us putting on our best show!

From a Music Festival a Concert or a Celebration like a Wedding or Birthday we have the right waste management solutions for you.

The Event Waste Management team here at Flame UK are dedicated and experienced at the smooth running of your special day. Our full-time litter pickers offer an unprecedented picking service for even the most complex of an event, leaving your venue in as good a shape as before the event took place.

With years of experience in the event management industry, we put our skills to excellent use from planning to clear up, keeping costs down and recycling high.

With one of the highest levels of recycling in the industry, your event can be clean and tidy and boast some of the best green credentials available.

We carry a huge range of wheelie bins, static bins, skips and roll on off containers available for rental or to purchase.

Saving you on every event

As one of the only event waste management companies to provide a planning team prior to your event you can be assured that you will have the right service at the right time before, during and after your event.

Let us handle your event

Call us on 01158965460 or email us at, sales@flameuk.co.uk

Landfill Tax, how much is it? What you need to know

After its introduction back in October 2016, the rate of landfill tax has steadily increased.

The introduction of the tax back in 2016 was made by the then secretary of state Mr. John Gummer, the tax started at a standard rate of £7 per tonne and was tabled to encourage a new wave of behavior for businesses.

Looking into the future the government set a floor limit, this was agreed whereby the rate would not fall by below £80 per tonne into 2020.

On the 1st April each year the rates of tax increase, this year is no different, a new record was set when the rate went above £90.

In 2018 the government published the next 2 years landfill tax rates. The tax per tonne will rise on 1st April 2019 to £91.35 and on 1st April 2020, the standard rates will be £94.15.

The tax does not affect businesses recycled waste just the general waste that is sent for disposal via landfill.

What will happen to the tax rates past 2020 at this stage we do not know, with green issues dominating the headlines it’s safe to say that rates will continue to rise, some commentators ever speculating the rise will be ‘significant’.

There are things we can all do to reduce the impact of the landfill tax, recycling more of our businesses waste being the obvious one, but what about creating less waste? Easier said than done we know but over the coming months we will be publishing more stories and case studies of those businesses who did exactly that, reducing waste and improving their profitability.

If you can’t wait to hear about these efforts and want us to help you right now, please get in touch. 0115 896 5460, or on email waste@flameuk.co.uk