Posts

Freeze your Energy Prices

How you can freeze Energy Supplier price rises

With the constant barrage of Energy Supplier price increases, now is the time to act and freeze prices in their tracks.  If your business energy contracts is due within the next 12 months you can secure rates at April 2019 prices.  The best way to find the cheapest tariff is to switch to a new supplier who are keen to attract you as a new customer as not all suppliers will offer you favourable renewal rates.

Terminate existing contract

The whole process is very simple and can be completed in 3 simple steps, whereby Flame UK do all of the hard work for you to make the energy switch a painless and seamless transaction.  Firstly, it is imperative to provide sufficient notice to the incumbent supplier as without this they will roll your contract onto uncompetitive rates for a further 12 months.  We handle this whole process for you once we receive a letter of authority from you, so you can be guaranteed that the relevant notice is given in line with the suppliers terms and conditions allowing you the ability to move Suppliers.

Full Supplier Price Comparison

We then confirm all of your meter and consumption details with your current supplier to provide the most accurate and competitive rates for you.  Flame Uk obtain quotes directly from the suppliers and provide you with a full price comparison on all appropriate suppliers for your business along with different contract length options.  This is a totally free service and rates will be secured on your behalf once you have decided which contract would be best for you.

Transfer your meter and manage your contract

We then handle the whole switching package on your behalf to ensure a smooth and seamless transfer to your new supplier once your old contract ends.  Throughout the contract period we are always on hand to resolve any energy problems should they arise, rather than waiting in queue’s within Supplier call centres and you have a dedicated account manager at Flame Uk as your point of contact.

It couldn’t be a simpler way to save money on your utilities.  Call 0115 8965460 to discuss prices today.

 

 

 

 

 

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.