In this week’s budget, the Government announced its intention to review the business energy tax landscape to consider approaches to simplify and improve the effectiveness of the regime. The review will include the Climate Change Levy, CRC Energy Efficiency Scheme and Climate Change Agreements. The Government has stated that it will launch a formal public consultation in the autumn which will be led by the Treasury.
We are aware that clarification from businesses is currently being sought in relation to ESOS so, for the avoidance of doubt, ESOS is a fixed point in the landscape, mandated by the EU. Given that the Government has not gold-plated implementation of ESOS, we do not consider that there is scope for further simplification of it at this time. This means that businesses that are required to comply with ESOS can be confident that the requirements for compliance are not about to change.
Also, in relation to the CRC, CCL and CCAs, pending any changes that the Government may make, participants are still required to meet their responsibilities under any schemes that they currently qualify for, with administration continuing as at present.
We will be taking an active role in the consultation process and will feedback all views from the Energy Legislation Forum both from previous discussions and the next meeting on 22nd September when we will be focusing on this topic. It has been suggested that, in the longer-term, there may be scope to build on ESOS as a point for simplification – no doubt you will be eager to contribute these thoughts during the consultation so put this date in your diary and register for the event by completing the contact form.