Manufacturers of sheet metal components, forgings, fasteners and cold rolled sections can get vital support to help them cope with soaring energy costs according to a leading trade body for the sector.
The Confederation of British Metalforming (CBM) has received notification from the Environment Agency that the Climate Change Agreement scheme has reopened to new entrants, but firms only have until March 31 to stake their claim.
This means thousands of businesses – already struggling with supply chain disruption and the aftermath of the pandemic – could be eligible for a discount of up to 100% of the tax they will be paying on their gas and electricity bills.
Bosses at the CBM made the rallying call today in a bid to raise awareness amongst companies who did not know the change of rules could see them benefit from the discount on the Climate Change Levy whilst the replacement scheme is being consulted on.
“Over the past two years, industry seems to have hurtled from one problem to the next, with our 200-strong membership base struggling with debt carried over from the pandemic, reduced sales due to supply issues and rising costs in all areas,” explained Stephen Morley, President of the CBM.
“The last thing they need now is soaring energy prices, where, in some cases, we’ve seen increases of over 100% – how can any business cope with that? It’s an issue that will be top of my list when l meet with Kwasi Kwarteng MP, Secretary of State for Business, Energy and Industrial Strategy, this week.”
The CBM has administered Climate Change Levy agreements since 2001 and its members have so far benefitted from annual savings of £4m in Climate Change Levy Tax.
Specialists at the organisation work with eligible members to complete all the administration by reviewing bills and completing the application before ongoing annual management with submissions to the Environment Agency.
Geraldine Bolton, CEO of CBM and lead on Energy Services, went on to add: “Industry is recovering and recovering well, but there are plenty of challenges – a lot of which are out of its control.
“Energy costs are at the top of everyone’s agenda at the moment, but outside of fixed price contacts there are few avenues for companies to turn. The Climate Change Agreement Scheme being reopened is an unexpected bonus, yet not many management teams know about it or understand what to do.
“After this window of entry is closed, there will be no more opportunities until March 2025, when we should eventually know what the new scheme will look like.”
She concluded: “By becoming a member and tapping into our offer, manufacturers can also avoid ‘consultants’ who, in some cases, take 50% of the potential savings. Our route is far more cost effective, plus it will also give them access to our other services, including extensive networking and lobbying capabilities.”