The Climate Change Levy is designed to help reduce carbon dioxide emissions (greenhouse gases) by up to 8% within 10 years as laid out in what is known as the 1997 Kyoto World Environment Summit. It is in essence, a tax on fuels. This has the effect that fuel bills will rise between 10% and 12%.

The UK Government has stated it wants to exceed the Kyoto target by reducing emissions by 12.5% between 2008 and 2012 and have aspirations to achieve reductions of 20% within the same time frame.

The Climate Change Levy is charged at a flat rate on each kWh of energy consumed for:

• Electricity
• Natural Gas
• Coal/Lignite
• LPG

The levy is a tax on the use of energy in industry, commerce and the public sector, with offsetting cuts in employers National Insurance contributions to ensure UK firms are not unfairly disadvantaged against European competition.

Some particularly energy intensive industries may be eligible for discounts of up to 80%. To benefit from this saving, a contract is agreed between the company and the Government. It commits the company to an energy reduction target over a ten year time span, which has milestone targets every two years.

How are the mile stones to be achieved?

• Development of energy conservation measures
• Introduction of energy project management
• Implementation of an energy monitoring and targeting program
• Conducting Energy Efficiency Audits
• Introduction of regular energy efficiency staff training sessions
• Implementation of a sensible energy purchasing policy

Square One Enterprises will work with you to provide an Integrated Utility Solution tailored to meet your specific company requirements.