The Climate Change Levy was introduced as an energy tax payable by all business. However, some industrial sectors were offered a rebate in the Levy in return for agreeing to specific energy reduction targets.
For the textile industry the wet processing sector (dyeing, printing coating and associated drying and finishing activities) along with spinning, weaving and knitting (and other similar processes) are eligible for the discount.
UKFT have administered the CCL rebate scheme for the sector for over 15 years and on average companies are currently saving over £20,000 a year, but for large companies the savings can be over £100,000 a year.
However, the discount scheme will be closed to new entrants at the end of the year and at the same time the Climate Change Levy rates will rise significantly from April 2019 – up 45% for electricity and 67% for gas. This will obviously see a rise in energy costs bills for members.
If you are a dyer/printer/spinner/weaver or knitter and you are not currently claiming the CCL discount please get in touch ASAP with Adam Mansell at UKFT email@example.com.