The 2018 Autumn Budget was presented in the House of Commons yesterday, Tuesday 29th October at 3pm.
Our market analysts and energy experts have reviewed the impact of how British business energy users would be affected and what the Budget could mean for your organisation directly.
Climate Change Levy (CCL)
The CCL is a tax on energy that affects business users in the United Kingdom. It has been designed with the aim of providing an incentive for businesses to increase energy efficiency and to reduce carbon emissions. There are certain business sectors that are exempt from some or all CCL charges through the Climate Change Agreements (CCAs).
Call us today on 0207 371 5360 and speak to one of our Energy Experts to find out of CCL exemption applies to you.
The Budget has set rates to try and balance the figure users pay between gas and electricity usage. The electricity rate will be lowered in 2020-21 and 2021-22. The gas rate will increase in 2020-21 and 2021-22, so it reaches 60% of the electricity main rate by 2021-22.
The aim is to obtain a ratio of 1:1 power to gas by 2025. The current ratio stands at around 2.8:1.
The Budget confirmed the carbon price of £18 per tonne will remain until April 2021. It is the Carbon Price Support (CPS) that has been influential in pushing coal out of the UK generation mix.
It has been confirmed that the Government will seek to reduce the CPS from 2021-2022 if prices remain high. However, there is no clear indication of what would be classed as ‘high’.
The doubling of the floor from £9 to £18/tCO2 in April 2015 also contributed to a reduction in coal output.
It has also been confirmed that if a ‘no deal’ Brexit should happen, the UK will impose a new Carbon tax that will be set at £16 per tonne.
New Business Energy Efficiency Fund
The Government has pledged to back and fund £315 million of investment into an Industrial Energy Transformation Fund, with the aim of supporting businesses with high energy consumption. It also aims to help companies transition to a low-carbon future and decrease their bills through increased energy efficiency.