Budget: Climate Change Agreement extended

Optimised Energy welcomes the extension of the CCA, which opens the scheme to new entrants, while changes to CCL rates incentivise a shift away from gas.

Chancellor Rishi Sunak’s first Budget on Tuesday included a number of announcements designed to further incentivise industry’s adoption of energy efficiency technologies.

Climate Change Agreement (CCA) scheme

The CCA scheme – which enables qualifying UK businesses to receive discounts on the Climate Change Levy (a tax added to electricity and fuel bills) in return for reducing energy use and CO2 emissions - will be reopened to new entrants and extended by two years. Full terms of the new scheme are yet to be set out but a consultation will launch soon. The consultation will also consider long-term options for the CCA.

Climate Change Levy (CCL) rates:

The Chancellor also announced an increase in CCL gas rates for 2022-23 and 2023-24 as part of what has become on ongoing process of incentivising moves away from gas (which has proved challenging to decarbonise) and towards electricity, for which emissions have been falling for much of the decade. The updated rates from 1st April 2020 are as follows:

Continued benefit

Mark Earnshaw - Energy Solutions Engineer at Optimised Energy:

"The extension of CCA's for a further 2 years means that our existing clients can continue to benefit from the reduction in Climate Change Levy, and opens the scheme to new entrants who may have previously missed the application window. This gives CCA clients the opportunity to utilise this revenue stream and invest in energy efficiency technologies, which will further reduce their energy costs and contribute to achieving the governments carbon targets."

To explore the benefits of the CCA for your organisation, and to maximise CCL savings over the coming years, talk to Chris Gore, Head of Sales & Marketing at Optimised Energy on 07508 503676 or email

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