Do you know your CCA from your CERT?
In the fast-paced world of energy management you could be forgiven for not knowing what the latest acronyms mean. Here’s our guide to the terms you’re likely to hear most often.
CCL Climate Change Levy
The Climate Change Levy is the tax aspect of your business energy bill. The amount of tax you pay depends upon how much energy you use.
CCA Climate Change Agreement
Businesses in energy-intensive industries such as food manufacturing can apply for a rebate on their Climate Change Levy – the tax aspect of their energy bills.
CRC Carbon Reduction Commitment
Businesses that use 6,000MWh of gas and electricity per year are subject to the CRC. This means they have to commit to and report on carbon reduction measures and trade carbon allowances.
ECA – Enhanced Capital Allowance
Capital spent on energy efficiency technologies can be entirely offset against income tax bills in the year of purchase.
EUETS EU Emissions Trading System
This is a carbon trading system for EU members. The EUETS requires countries to reduce their emissions.
FiTs Feed-in Tariff Scheme
This is an incentive payment for firms that set up facilities to generate power. Payments are made to the business by suppliers on a quarterly basis and the tariff is set by the government.
Low cost loans for commercial (and domestic) energy efficiency measures.
RO Renewables Obligation
Renewable energy suppliers purchase Renewable Obligation Certificates to prove compliance with UK targets for renewable energy generation and supply.
RED Renewables Energy Directive
This is an EU initiative which sets country-level targets for sourcing energy from renewable sources.