Acronym

Detail

Key point summary

CCA

Climate Change Agreement

See CCL. Energy intensive industries can apply for a discount (CCA) from their CCL. The discount is based upon evidence of energy saving measures taken by the business.

CCL

Climate Change Levy

Unit based tax on business energy. The tariff is set each year and is levied to all businesses on their energy bill based upon consumption.

CERT

Carbon Emissions Reduction Target

UK legislation targeting suppliers to reduce householder emissions. Suppliers meet this by funding energy efficient projects.

CESP

Community Energy Savings Programme

UK legislation targeting suppliers to fund energy saving measures in socially vulnerable households.

CRC

Carbon Reduction Commitment

Applies to all business users of 6,000MW power (both electricity and gas) per annum in 2008, if they are not already targeted under EUETS and Greenhouse Gas Reporting. Affected businesses have to commit to reducing carbon, reporting on usage and trading carbon allowances. Phase 2 of the CRC is about to start with a new qualifying year for usage from 2012 -2013.

ECA

Enhanced Capital Allowances

Capital expenditure on energy efficient technologies can be 100% offset against income tax bills in the year of purchase vs normal offset levels of 25%. The installed technology has to be on the government prescribed efficient technology list.

ECO

Energy Company Obligation

New obligation on energy companies to provide a Green Deal like service to vulnerable households.

EUETS

EU Emissions Trading System

EU carbon trading system for countries. The legislation mandates countries to reduce their emissions.

FiTs

Feed-in-Tariff Scheme

Incentive payments for renewable microgeneration facilities. The tariff is set by the UK government and index linked to energy prices. Payments to the energy generator are made by suppliers on a quarterly basis.

Green Deal

Green Deal

Low cost loans for domestic and commercial energy efficiency measures. Funding will be linked to buildings not people. Lending based on payback periods of 5 Years and repayments made through energy bills. The amount measures cost must not exceed the savings from implementation over the life of the loan. Due to start October 2012.

Greenhouse Gas Reporting

Greenhouse Gas Reporting

EU legislation where carbon allowances are issued to businesses. Businesses need to have enough allowances to cover usage or buy more.

RED

Renewable Energy Directive

EU directive which imposes country level targets for sourcing energy from renewable sources.

RHI

Renewable Heat Incentive

UK incentive payments for new installations of prescribed renewable heat technology. Operates in a similar way to FiTs in that an amount is paid out based upon a tariff multiplied by heat generated.

RO

Renewables Obligation

Support mechanism for renewable electricity projects. Units are issued as ROCs (Renewable Obligation Certificates) which suppliers purchase to prove to prove their compliance with UK targets of renewable energy generation and supply.

RTFO

Road Transport Fuel Obligation

Like RO for the fuel supply industry. Fuel suppliers have to meet increasing targets for supplying fuel from renewable sources, e.g. biofuel, biogas