CCLG8150 - Reduced-rate energy intensive users: Verification of entitlement to the reduced-rate

The overall responsibility for Climate Change Agreements (CCA) lies with Department for Environment, Food and Rural Affairs (DEFRA) and the Secretary of State. Customs’ role is to oversee the application of the reduced-rate and not other aspects of the agreements.

Each business is required to submit a ‘Participants Pack’ application to DEFRA. Form PP4 of this pack is required to contain a detailed description of the facility and you may need to refer to this in checking eligibility for the reduced-rate relief.

If the energy intensive installation consumes more than 90% of the total taxable commodities (coal, gas, electricity, LPG) used on the site, then the entire site is eligible to be covered by a CCA (referred to as the 90/10 rule). The activities that are not part of the ‘facility’ must be listed on the PP4 form to receive approval for this treatment.

Traders should have retained a copy of their ‘Participants Pack’ documentation but if problems are encountered it may be possible to obtain copies directly from DEFRA. Any cases of difficulty should be reported to the UoE.