Budget Briefing 18th March 2015
The Chancellor has delivered Budget 2015; please see below details of those policies that may affect our clients:
Climate Change Levy Rates
Rates will rise from the 1st April 2015 in line with current inflation; the rates will be:
|Electricity||£0.00554 per kWh|
|Natural Gas||£0.00193 per kWh|
|Any petroleum gas, or other gaseous||£0.01240 per kg|
|Any other taxable commodity||£0.01512 per kg|
Climate Change Levy main rates will increase in line with RPI from 1 April 2016.
Carbon Price Support Rates (CPS)
Rates will rise from the 1st April 2015; the rates will be:
|Gas supplied by a gas utility||£0.00334 per kWh|
|Liquid Petroleum Gas (LPG)||£0.05307 per kg|
|Coal and other solid fossil fuels||£1.5686 per GJ on GCV|
Carbon Price Support rates for 2017-18 will remain at £18/tCO2, in line with the £18/tCO2 cap on the CPS rate from 2016-17 to 2019-20 announced at Budget 2014. The CPF trajectory will remain unchanged.
As confirmed at Autumn Statement 2014, from 1st April 2015 the government will exclude from the carbon price support rates, fossil fuels that are used by combined heat and power plants to generate good quality electricity that is self-supplied or supplied under exemption from the requirement to hold a supplier licence.
The carbon price support rates do not apply in Northern Ireland.
Hydrocarbon Oil Duty (HOD)
The planned increase in fuel duty from the 1st September 2015 has been cancelled; therefore rates will remain at:
|Diesel oil||£0.5795 per litre|
|Marked gas oil or Kerosene to be used as fuel in an engine||£0.1114 per litre|
|Fuel oil/Heavy oil used as fuel||£0.1070 per litre|
|Biodiesel for non-road use||£0.1114 per litre|
|Biodiesel blended with gas oil not for road fuel use||£0.1114 per litre|
Enhanced Capital Allowances
The list of designated energy-saving and water-efficient technologies qualifying for an Enhanced Capital Allowance will be updated during summer 2015, subject to state aid approval.
Energy intensive industries
Budget 2014 announced a package of reforms to radically reduce the energy costs faced by the most energy intensive industries. This included compensation for the indirect costs of small-scale feed in tariffs (FITs) and the renewables obligation from 2016-17. Budget 2015 announces that the government will bring forward the FITs component of the compensation to the earliest point at which State Aid approval is received in 2015-16.
If you require any further information about how Budget 2015 may affect you or wold like to know more about the services 2EA® provide, please feel free to get in touch.