WhoshouldIsee Tracks

Update on Climate Change Agreement

GOVERNING BODIES ANNOUNCE CHANGES TO THE CCA SCHEME

Many clients rely on the Optimised compliance experts to stay abreast of important regulations. Following a recent consultation on the Climate Change Agreement (CCA), a new requirement is being introduced for operators to report on their energy actions taken during target period 6 (Jan-Dec 2024), by 1st May 2025.

 

Recording energy saving projects has always been part of the scheme, and all operators are obliged to maintain records as part of their underlying agreement, but few do. The scheme now requires these actions to be reported to their sectors, as part of the target period end-submissions.

The Government and their administrator, the Environment Agency, are tightening the scheme to prevent operators using it like tax avoidance. They now require proof that participants are actively undertaking energy reduction and decarbonisation actions to meet targets.

 

This update applies to all CCA scheme members and requires records to be retained of energy saving actions and measures implemented, for the duration of the target period, starting 1st of January 2024.

The operator should be able to describe their performance during the target period to explain the reasons underlying that performance, including any step changes at key points in time, for example new technology installation dates.” (Section 9 Auditing the CCA scheme, Clause 9.3.3)

 

Optimised is uniquely placed to provide compliance and decarbonisation advisory as well as simulation and actual implementation. Clients are encouraged to consult their dedicated account manager, for further advice. If you are not yet a client of Optimised, you can speak to one of our experts in a free consultation call, by completing the form below.

See 14.2.2 of the underlying agreements – 14.2 In particular, an Operator must retain: 14.2.2 records of energy saving actions and measures implemented during each target period.



The omission or late submission will potentially lead to a fine with the maximum penalty being the great of £500 or 10% of the value of CCL (climate change levy) discount in the base year (2018). Failure to submit entirely may lead to termination from the scheme.

Extract taken from the Climate Change Agreements Operations Manual, February 2022, LIT7911

Section 8 Application of financial penalties and termination.

Clause 8.1.2 Specific to regulations 15(1)(a), (c) and (d)

  • failing to provide us on or before 1 May following the end of the target period with the information we need to determine whether an operator’s progress towards meeting their target is satisfactory (regulation 15(1)(a))
  • failing to provide information by the date we specify, when we ask for any other information to determine whether the operator has met its target or is complying with its underlying agreement (regulation 15(1(a))


Performance reporting

Where relevant, the auditor will check the reported performance data and the supporting evidence of the TU’s performance against its targets. The auditor will check for records of energy saving actions and measures implemented, which operators must retain as part of their obligations under their underlying agreement.

READ ABOUT MORE COMPLIANCE SCHEMES

By Optimised 31 Mar, 2023
Following the Government commissioned review in 2019 of the Climate Change Agreement Scheme and the subsequent Chancellor’s announcement in the Spring 20 Budget of a scheme extension, a further announcement was made in the Spring 23 Budget of a proposed further Target Period 6 (January 2024 – December 2024) with CCL relief extending up to 31st March 2027.
By Optimised 11 Jan, 2023
This update to the scheme operates in a different manner to the one that is currently in place until the end of March and is currently projected to run from 1st April 2023 until 31st March 2024. It will continue to provide a reduction to the commodity cost of energy consumed in the valid period, however the level of reduction available has been drastically reduced.
By Optimised 21 Sep, 2022
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