Reform of Business Energy Efficiency Tax – The Way Forward?

Reform of Business Energy Efficiency Tax – The Way Forward?

  • 29 Sep 0

Following the announcement of a review of the business energy efficiency tax landscape at the Summer Budget, HM Treasury and the Department of Energy and Climate Change have launched a joint consultation seeking evidence and setting out policy proposals to simplify and improve the effectiveness of the landscape in supporting the government’s objectives around simplicity, productivity, security of energy supplies and decarbonisation.

The consultation considers the interactions between business energy policies and regulations, including the Climate Change Levy (CCL), the Carbon Reduction Commitment Energy Efficiency Scheme (CRC), taxes on other fuels – e.g. heating oils, Climate Change Agreements (CCA), Mandatory Greenhouse Gas (GHG) reporting, the Energy Saving Opportunity Scheme (ESOS), Enhanced Capital Allowances (ECAs) and the Electricity Demand Reduction (EDR) pilot.

Responses are being sought from businesses, representative bodies, public and third sector organisations, think tanks, academics and other interested parties. The consultation was launched on 28th September and will conclude by 9th November 2015.

The proposals do not seek to address all the barriers but set out approaches to improving the effectiveness of the policy framework by:

  • simplifying reporting and taxes to reduce administrative burdens;
  • developing policies that will have the potential to actually deliver cost-effective energy efficiency using the data gathered from current reporting regulatory requirements
  • using policy instruments to help raise the profile of energy efficiency and carbon reduction with decision makers; and
  • improving the case for investments in energy efficiency and low carbon alternatives.

The outcome of the consultation and any resultant policy changes will be announced in the 2016 Budget. 

We are formulating our response to the consultation questions and would welcome feedback from business leaders and interested parties to incorporate into this. Complete the contact form or email compliance@carbon2018.com to get involved.


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