Climate Change Levy

UK businesses encouraged to help reduce emissions

Businesses in the United Kingdom are to be taxed on energy usage which in turn will be used to provide a financial incentive to encourage investment in energy efficient technologies. It is one of the measures being introduced to ensure that the United Kingdom meets its domestic target of a 20% reduction in greenhouse gasses under the Kyoto Protocol. Compressed Air Systems (UK) Ltd as a major dealer for compressor drive systems have been involved as an energy saving consultancy and have extensive product knowledge on Regulated Speed Rotary series compressors also utilize an approved drive system and motors, coupled to our system software presentations, you could not be in safer hands. Contact: Climate Team on: 0121 753 3330 Compressed Air Systems (UK) Ltd Switched reluctance drive systems, Inverter variable speed drives and certain electric motors are listed as qualifying technologies on the United Kingdom's Energy Technology List therefore qualifying for Enhanced Capital Allowances.

Why the Climate Change Levy?

Emissions of greenhouse gases are affecting the global climate. One of the principal elements in climate change is carbon dioxide emissions resulting from the burning of fossil fuels, such as gas and coal, either as a primary energy source or to generate electricity.

What is the Climate Change Levy?

The climate change levy is a tax on energy use. All United Kingdom businesses and public sector organizations will pay the levy via their energy bills from 1st April 2001.

Levy rates

* 0.43p/kWh - Electricity
* 0.15p/kWh - Gas
* 1.17p/kg - Coal
* 0.96p/kg - LPG Typically the levy will result in a 10 - 20% increase in energy costs.

How can Compressed Air Systems (UK) Ltd help me reduce my Energy Consumption?

Compressed Air Systems (UK) Ltd can undertake compressed air system data logging and audits in order to identify energy saving opportunities and recommend system improvements aimed at reducing your compressed air generation costs.

What is the Enhanced Capital Allowance Scheme?

The Enhanced Capital Allowance (ECA) Scheme is financed by the Climate Change Levy and has been introduced in the United Kingdom to encourage businesses to reduce carbon emissions by providing an incentive to invest in energy efficient technologies. Enhanced capital allowances enable businesses to obtain tax relief on the full cost in the first year for investments in products that incorporate qualifying technologies which are on the approved Energy Technology Product List.

What are the ECA qualifying technologies?

* Electric Motors
* Drives
* Boilers
* Lighting
* Refrigeration
* Pipework Insulation
* Thermal Screens
* Combined Heat and Power

Which Motors are eligible for ECA's ?

* All 2 and 4 pole motors between 1.1 and 90 kW that meet the CEMEP EFF1 efficiency ratings
* All 2 and 4 pole motors between 90 and 400 kW and 6 and 8 pole motors between 5.5 and 315 kW that meet the Water Industry Motor Efficiency Standards (WIMES) ? Multiple Speed motors