The UK government is committed to ending greenhouse gas emissions by 2050. To help reach this target, the Climate Change Agreement (CCA) scheme was introduced in 2001, encouraging Energy Intensive Industries to commit to energy performance targets in return for financial incentives applied through reduction in Climate Change Levy (CCL) liability. Polypipe Ltd commissioned Inenco to manage their Climate Change Agreement in 2009. Over the duration of the proposed contract period Inenco estimated that the CCA would enable a financial saving of £2,513,000, obtained through Climate Change Levy (CCL) relief.
In order to maintain compliance with the scheme and retain the associated financial incentives, Inenco proposed a fully managed compliance service. This included providing a service that was designed to meet Environment Agency requirements, supporting Polypipe through their obligations as an operator and guiding them through HMRC requirements. This also included a continuous and effective monitoring and targeting system.
Throughout the period in which Inenco have managed Polypipe’s Climate Change Agreement (CCA) Inenco increased the scope of Polypipe’s CCL relief by adding additional work sites in the reporting during the transition between Phase 1 and Phase 2 of the CCA scheme. Inenco also restructured the reporting as the production requirements and the energy intensity of the portfolio changed, which in turn reduced Polypipe’s buy-out fee liability.
Inenco also restructured the reporting as the production requirements and the energy intensity of the portfolio changed, which in turn reduced Polypipe’s buy-out fee liability. Another key implementation was the confirmation of Inenco’s reporting methodology to the relevant industry trade federation. Polypipe had been initially informed that they could face a large buyout compared to Inenco’s forecast. However, after Inenco demonstrated and evidenced their methodology Polypipe’s fee was reduced to a similar level to Inenco’s original forecast. This saved Polypipe £160,000.
Inenco met with Polypipe 6 times a year to review CCA compliance, review current energy management practices and energy saving opportunities which would lead to a more environmentally sustainable future for the business. Quarterly reports were provided for each site, detailing energy efficiency and carbon output, along with recommendations to improve performance against the targets set.
Aided by Inenco’s continuous support and active management of Polypipe’s Climate Change Agreement, Polypie was able to secure Climate Change Levy savings in the region of £3,000,000. Energy intensity has been reduced by 86.2% since Inenco have managed the CCA.
Since 2015 Polypipe have also made a saving of approximately 19,500 tonnes of carbon, creating a path towards a more environmentally sustainable future for Polypipe.
Polypipe Ltd have extended their Climate Change Agreement (CCA) management service to 2025. Two new sites have been added to the agreement – Alderburgh and Manthorpe. Inenco estimates that adding these two new sites will result in an additional £274,642 of savings through Climate Change Levy (CCL) relief, until the end of the current CCA scheme.