Total Gas & Power
Total Gas & Power is a business energy supplier, wholly owned by Total SA. It has been a leading business ...Read More
The recent budget confirmed the removal of the Climate Change Levy (CCL) exemption for renewable electricity. The implications for SMEs are significant.
The budget was marked by substantial cuts to government spending to move towards the aim of eliminating the deficit. While the reductions in benefits attracted the most attention, changes to the renewable energy market could have more impact on small to medium sized businesses.
Renewable source electricity (RSE) will be liable for the Climate Change Levy (a tax on energy delivered to non-domestic users in the UK) after Levy Exemption Certificates (LECs) are dropped (although there is no timetable). Power generated by wind, solar or other sustainable sources will be more expensive, with the increases in price likely to be passed to business customers. You can find more of the detail in the official government document.
Some observers see this as a necessary reduction in expensive subsidies: the Chancellor said the removal of the exemption will earn the Treasury £450 million in 2015/16, rising to £910 million in 2020/21. But others complain that the move sets back the UK’s journey to becoming a low-carbon economy, especially as the government has been supportive of fracking and has lowered taxes on North Sea oil and gas.
RenewableUK, the trade association representing the wind, wave and tidal energy industries, is one of the critics. Its Director of Policy, Dr Gordon Edge, called it “a punitive measure for the clean energy sector” that undermines “vital financial support for renewable energy producers” and constitutes “another example of this Government’s unfair, illogical and obsessive attacks on renewables”.
“We’re suddenly looking at a substantial amount of lost income for clean energy companies which was totally unexpected,” Edge added. “Levy Exemption Certificates account for just over 6% on onshore wind generators’ revenues.”
While generators fret about projects slipping into unprofitability, there may be an unexpected silver lining for small to medium sized companies. As suppliers scramble to find customers for their renewable sourced electricity, there are eye-catching discounts on green energy, at least in the short term.
For SMEs looking to ‘go green’ there has never been a better time. Even those more motivated by price might be surprised by how much cheaper electricity rates have become. For a fast expert overview of your options just fill in the form at the top right of this page or call 0330 0100 251. You could be getting cheaper, greener energy in just 20 minutes.
thank you nicole for your kind help to…
"thank you nicole for your kind help to set up my business electric account fantastic service and your personal touch thank you"This review was posted by Sam Raju on the 19th of February 2018
Aaron Gallagher recently helped me…
"Aaron Gallagher recently helped me switch the gas and electricity supply for our business. He was extremely helpful and well informed which was great for me as I know nothing in this area! He saved us a small fortune and dealt with all of the switch for us which again was extremely helpful as it wasn't completely straightforward. Thanks again for you help Aaron, it was so appreciated."This review was posted by Rachel on the 17th of February 2018
A better deal for our Village Hall
"I recently used this company to get a better energy deal for our local village hall. Other companies were quite pushy but Lorraine and Bhavni from SwitchMyBusiness were much more professional. They sent me useful information by email enabling me and the village hall committee to make a decision about which supplier to use. The switch was done by phone and when the energy provider sent the paper work to the wrong address Bhavni sorted it out straight away. I saved over £1000 for the charity."This review was posted by Irene Winter on the 16th of February 2018
"Lorraine was great and very helpful. We negotiated and received a good deal on our supply."This review was posted by Edwina Nash on the 16th of February 2018
The SME Personal Switcher
"The SME Personal Switcher, Lorraine Carey was really helpful."This review was posted by Cross Fabrications on the 16th of February 2018