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Industry should heed levy warning
Keywords Energy services, Environment, Surveys
Half of all businesses polled by Energy Services (UK) Limited, the energy management services company, have not taken any steps towards complying with the anticipated Climate Change Levy.
Since the poll was conducted, last December, the Government has announced further modifications to the legislation relating to the eligibility of businesses that use "good quality" combined heat and power plants, plus allowances for high-intensive users. In addition, the Government is also proposing increasing energy efficiency grants.
Stuart Jackson, business manager at Energy Services, says: "We may still see further amendments to the Climate Change Levy before it is put in place next year, and businesses need to keep abreast of all the latest developments.
"One of the biggest issues among those companies polled at NEMEX '99 was the lack of understanding of the proposed legislation and how important it is to comply. Many companies viewed it as another method of raising taxes and 5 per cent believed it would put them out of business, which is a worrying statistic.
"Unfortunately many businesses do not understand the benefits that the legislation will bring. There are potential savings to be had and, by reviewing energy usage across the business, many could find that hidden energy savings could significantly soften the cost of the levy.
"The companies that we are working with experience significant advantages in such areas as improving industrial processes and maximising the efficiency of heating and ventilating systems.
"From Energy Services' stance the levy is a move in the right direction for the whole industry and the encouragement and businesses need to take energy efficiency more seriously. From our research we know that 91 per cent of businesses know that they could be doing more in relation to energy conservation; it is just a matter of convincing them to review their current method of operation and reap the benefits."
Energy Services (UK) Limited is an independent energy services provider, working closely with UK industry to develop and implement effective energy management solutions.
Details available from: Energy Services (UK) Limited. Tel: +44 (0) 121 585 4000; E-mail: email@example.com