The British Plastics Federation (BPF) is in the final stages of entering into a climate change agreement (BPF CCA) for the plastics sector with the Department of Energy and Climate Change (DECC). This Agreement has the potential to save the UK plastics industry more than £50m per annum in climate change levy (CCL) payments until the year 2017.

For companies with a qualifying site in the UK the agreement can result in an 80% discount on the CCL they pay on electricity and LPG. This scheme will be attractive to companies consuming in excess of 250,000 kWh per annum. 

Strict entry deadlines have been put in place by DECC and the BPF director-general, Peter Davis, is calling on all plastics firms to act now to start the registration process for claiming their levy discount. “At last the plastics sector has been put on a level playing field with other materials that already have CCAs,” said Davis. “Furthermore, the discount afforded by a CCA will go straight back into investment to improve further the efficiency and competitiveness of the industry.

“If companies are to benefit from this unique opportunity they must act now and begin the registration process. So far almost 100 companies have had the foresight to apply for the scheme and will benefit from the discount from the earliest possible opportunity.”

If a company starts the application process now it may benefit from the CCA discount as of the entry date of 1 October 2009. The absolute cut-off for DECC accepting completed CCA applications for the current scheme year is 31 October 2009 and if companies miss this deadline then the next entry point to the scheme will be 1 April 2011.

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