Business Energy Compliance

Mandatory reporting and audit obligations

The range of obligations we can support include:

Best practice accreditation

Securing an international standard in energy or environmental management can deliver commercial and reputational benefits for your business, including cost savings, and will demonstrate your commitment to continual improvement. It may even exempt you from certain mandatory obligations.

Our team can help your business qualify for the following best practice accreditations:

• ISO 50001 is an internationally recognised standard that specifies how businesses should establish, implement, maintain and improve an energy management system. It is an ideal way to embed best practice into your business on an enduring basis. ISO 50001 will also provide exemption from ESOS compliance
• ISO 14001 is another internationally recognised standard that supports effective environmental management by providing a specific framework. ISO 14001 helps businesses drive down costs through a broad focus on environmental factors such as supply chain design and resource efficiency

Energy tax exemptions

If your business utilises energy from a low-carbon source – such as on-site wind, solar, biomass or combined heat and power (CHP) plant – you could qualify for exemption from the Climate Change Levy (CCL). This tax is added to the energy invoices of any commercial business using 1,000 kWh+ per month of metered or un-metered electricity and 4,397 kWh+ per month of piped gas or above.

Climate Change Levy (CCL)

The CCL is added to business energy invoices and collected by your supplier on behalf of HMRC. But you do not have to pay CCL costs, or may be able to claim relief, if you:

• Use self-generated low-carbon energy
• Consume less than 33 kWh of electricity or 145 kWh of gas a day
• Are a charity engaged in non-commercial activities
• Are classified as a large Energy Intensive Industry(EII) and have a Climate Change Agreement with the Environment Agency

Energy intensive industry exemptions

Energy intensive industries are defined by industry sector and intensity of consumption. Your business may qualify for exemptions via Government schemes designed to keep UK businesses competitive with their EU counterparts, whose energy costs are often lower. The exemptions could provide a reduction of up to 85% of the costs of Contracts for Difference (CfD), Renewables Obligation (RO) and Feed-in Tariff (FIT) levies.

To qualify for exemption, you have to successfully apply for EII status. To do this, you must:

1. Manufacture a product in the UK within an eligible sector
2. Pass a 20% electricity intensity test

You will then be issued with a certificate to pass to your energy supplier, so that your exemptions can be applied to your invoices.