You will be aware that after concerted effort from many sectors, Treasury announced that the CCA scheme would be extended for a further two years and reopened to new applicants. The intention is to allow more time for a properly considered long term alternative for the CCA, so this extension is something of a stop gap while that process happens.
Now it is up to BEIS to implement these short term changes and consult on the longer term future. The consultation is therefore split into two parts – the immediate steps needed to reopen the scheme and open it to new entrants and longer term planning.
We are concerned with both, but attentions is focused on shorter term because the BEIS proposals are not only disappointing but impractical and introduce pointless new complexities. Current plans are that the application window for new sites will be ridiculously short – ending on 30th September 2020. This in reality means a much earlier deadline for preparation and submission imposed on operators already struggling to handle coronavirus workloads. It also happens to be before the new targets can be set which means that operators will be applying blind. And just to add a further bit of Kafkaesque nonsense, there seems to be no plan to reopen the application window in January. From a department where the raison d’etre is ostensibly to support business this is hopelessly inadequate, demonstrates a worrying lack of awareness of business processes and is generally very disappointing stuff. Have a look at the consultation here to see why we are so cross. The best advice to operators with eligible new sites is “get your skates on”.
The slides from the session on Friday are below (scroll down to the link in pink).
Just to summarise:
- The current CCAs are extended for two years and instead of the CCL discount ending in March 2023, it would end in March 2025. All target unit agreements would be modified to reflect this.
- A new 5th Target Period would be introduced to run from January 2021 to December 2022.
- The target proposed is 6.7% between 2018 and 2022, for all sectors. This would mean selecting a new base year and a lot of associated complexity. We don’t understand why they have not opted to extend existing target trajectories.
- New sites could join the extended scheme before the end of 2020. Eligible sites would need to submit to our helpdesk for checking and submission to the EA before the end of September 2020.
Therefore, new applications will need to be submitted to our helpdesk by the 31st August 2020. New Climate Change Agreements would be issued to take effect from 1st January 2021.
If your organisation has a potential new entrant than please contact our CCA Helpdesk for advice on how to proceed. They are happy to review applications in advance of the consultation closing and the Government response being issued, however, any fees paid to have the application reviewed will not be refunded if the Government decide not to implement the proposals in the consultation.
techUK CCA Helpdesk
Tel: +44 (0)844 800 1880
The techUK CCA scheme is administered by SLR Consulting Limited