Leyton launches new service to help energy-intensive businesses benefit from Government compensation schemes
Leyton UK, the country’s leading innovation funding consultancy, has launched a new energy service, to help businesses make the most of the Government schemes that enable them to claim compensation for costs associated with energy generation. The new UK wide service is available to businesses in the UK’s most electricity-intensive industries to help mitigate the extra costs passed on by UK electricity suppliers as they reduce the use of fossil fuels and switch to renewables. Leyton believes firms in the Manchester region can particularly benefit due to a higher proportion of high energy intensive businesses.
The Government has a series of compensation schemes relating to charges for energy use to help improve the competitiveness and mitigate the impact of renewables policies. Businesses can apply for compensation for a proportion of the costs of their energy bills.
The new service has been set up in response to receiving numerous enquiries from clients, with Leyton estimating companies are missing out on millions as a result of the complexity of navigating the various energy taxation regimes. Leyton’s specialist consultants manage the process for clients to help them capitalise on the opportunity.
Some of the different charges that businesses are paying that they are able to claim for include:
- Electricity Market Reform: The Government has levied amounts of money on energy suppliers which are passed on through mechanisms including Renewables Obligation, Contracts for Difference and Feed-In Tariffs.
- Price Increase Mechanisms: EU ETS ‘Cap and Trade’ system and Carbon Price support are mechanisms to drive coal out of the UK system. As a result they increase the end users’ energy price.
- Climate Change Levy: This is a tax on the consumption of electricity, natural gas and fossil fuels for non-domestic users in the UK. Sectors eligible include: Industry, Retail, Agriculture and Public Services.
According to Henri Merlin, Head of Energy, Leyton UK: “The UK Government recognises that the need to tackle climate change should be done in a way that doesn’t damage the competitiveness of businesses. The challenge is the wide scope and complexity of the different regimes companies with high energy costs can claim under. Many are underclaiming what they are owed, or not aware of the full scope of the schemes and process. The money they can claim in a challenging business climate can make the difference between being in profit or loss. As the UK’s leading innovation funding consultancy with expertise in energy, we can help guide clients through this process.”