The Climate Change Levy 3 Months On: Has It Affected your Business?
If you’re a business owner, you’ll have noticed the impact of the Climate Change Levy. Introduced in April 2019, the main aim of the levy is for businesses to reduce their carbon footprint and promote environmental sustainability by reducing their energy usage.
What are the Charges?
Many businesses worry about the new charges that the Climate Change Levy has bought about, but the taxes are vital if we want to help protect and develop our planet. If there is still a struggle after three months, EPC For You can offer commercial EPCs (Energy Performance Certificates) with recommendation reports on how your business can save more energy and money.
This government scheme taxes businesses on their commercial energy usage with the aim to increase overall energy efficiency. Tax rates include business gas, electricity, and solid fuel; all of which might impact your company accounts.
Information on the GOV UK website shows a significant increase in the Climate Change Levy rates. If you’re a business owner, it may stir concerns about your future! Climate change is a huge issue throughout the world and the United Nations have developed sustainable goals to ensure prosperity for the people of the planet.
So, are the new charges of the CCL inconvenient for businesses? Yes. However, its main goal of increasing energy efficiency is achievable by taking the right steps.
How to Reduce Your CCL Payments
The Climate Change Levy charges a business for each kilowatt-hour of usage, so the only way to reduce your payments is by becoming more energy efficient. There are many benefits of reducing your carbon footprint; you will receive lower energy bills and achieve a much better social image! Millennials, for example, are one of the most influential generations, and they respond well to companies that take responsibility for their carbon footprint. You might find that spending money on improving your energy efficiency will attract more customers and help you secure a better future for your business.
If you’re unsure about how to reduce your energy usage, signing a Climate Change Agreement (CCA) can save you up to 90% on the CCL. Businesses that voluntary sign a CCA can save thousands of pounds a year, so it’s worthwhile if your company requires a lot of energy to run.
If you want to reduce your carbon footprint, there are some simple ways to save on energy costs. As mentioned, an EPC shows how efficient your building is, and its potential efficiency. With a push in the right direction, you may find that this option is the offers the most assistance. Businesses often forget that their energy efficiency can be improved by some small changes, like adding insulation to your building or upgrading the windows to double glazing. Before panicking that your CCL taxes are getting out of control, think about how your actions can lower the costs.
1. Heat only the areas you need to
There isn’t much point heating areas that don’t require it, so review your temperature controls. Your employees need to feel comfortable at work, but every business has at least one room that people rarely use. Adjust your seating arrangements to ensure people work in one room which means you can turn your heating off in empty spaces.
2. Get light sensors
Light sensors can save you so much money and are a cost-effective way to reduce your electric use. Fitting the sensors can give you savings of 30% each year.
3. Switch it off!
One of the biggest contributors to electricity bills is not switching items off at night. Before leaving the office make sure all electrical equipment is turned off at the mains and install timer switches if your staff have trouble remembering.
4. Keep it at 60℃
Your hot water doesn’t need to be set high. In fact, 60℃ is ideal for cleaning and washing items.
5. Lower your consumption
Smart meters are excellent for monitoring your daily usage. They let you see where your energy is used and mean you’re able to reduce the overall costs. Your thermostat doesn’t need to be at a high temperature so don’t be afraid to lower it a couple of degrees. Most people advise thermostats should be set between 16℃ to 19℃ to keep staff members comfortable.
Small Changes Make a Big Difference
The Climate Change Levy is here to stay, but you don’t have to suffer. Small changes can make a big difference in your energy costs, not to mention the promotion of environmentally friendly practices. Hopefully, the CCL hasn’t affected your business much, but if it has, EPC For You can help analyse your energy efficiency and reduce your costs.
