Climate change levy

  
 

 

BFM Ltd has established a Climate Change Levy Agreement which will entitle members with a wood coating operation to claim a rebate of up to 80% of the levy paid on energy consumed. Work with member companies shows that rebates are typically in the order of £3,000 to £8,000 p.a.

The climate change levy came into effect on 1st April 2001. All businesses have to pay the levy, which applies as follows: 

            Fuel

            Rate of levy

            Electricity

            0.43 p/kWh

            Gas

            0.15 p/kWh

            Coal and lignite

            1.17 p/kilogram

            LPG

            0.96 p/kilogram

Therefore, the levy effectively adds around 10 to 15% to the energy cost of a typical furniture manufacturing site.

A number of sectors have developed Climate Change Agreements with Government to enable certain processes to gain a rebate of 80% of their levy.  Eligibility to enter into an Agreement is determined by reference to the Pollution Prevention and Control (England and Wales) Regulations 2000. Although furniture sites do not typically operate such processes, they often have coating shops with an element of solvent based coatings. This allows them to enter into an Agreement under Part A(2) of the Regulations.

All companies entering into an Agreement must commit themselves to the implementation of energy saving initiatives – typically saving 1% per year until 2010. This saving will be assessed in terms of energy per unit such as kWh per bed or kWh per per m3 of timber processed. Most furniture sites will be able to generate such savings.

To find out more information &/or request an application pack, please contact Alistair Bromhead