Service aims to help firms benefit from Government energy compensation schemes

Innovation funding consultancy Leyton UK has launched a new energy service to help businesses make the most of Government schemes enabling them to claim compensation for costs associated with energy generation.

The service is available to businesses in the UK’s most electricity-intensive industries to help mitigate the extra costs passed on by UK electricity suppliers as they reduce the use of fossil fuels and switch to renewables.

Leyton, which opened a new office in Manchester last October in response to growing demand from local companies for its expertise in securing R&D tax relief, believes firms in the Manchester region can particularly benefit due to a higher proportion of high energy intensive businesses.

The Government has a series of compensation schemes relating to charges for energy use to help UK businesses improve their competitiveness and reduce the impact of the energy supplier costs.

Businesses can apply for compensation for a proportion of the costs of their energy bills.

The new service has been set up in response to receiving numerous enquiries from clients, with Leyton estimating companies are missing out on millions as a result of the complexity of navigating the various energy taxation regimes.

Leyton’s specialist consultants manage the process for clients to help their businesses maximise the value of the opportunity.

Some of the different charges that businesses are paying that they may be able to claim for include:

• Electricity Market Reform: The Government has levied amounts of money on energy suppliers which are passed on through mechanisms including renewables obligation, contracts for difference and feed-in tariffs
• Price Increase Mechanisms: EU ETS ‘Cap and Trade’ system and carbon price support are mechanisms to drive coal out of the UK system. As a result they increase the end users’ energy price
• Climate Change Levy: This is a tax on the consumption of electricity, natural gas and fossil fuels for non-domestic users in the UK. Sectors eligible include industry, retail, agriculture and public services

Henri Merlin, head of energy, Leyton UK, said: “The UK Government recognises that the need to tackle climate change should be done in a way that doesn’t damage the competitiveness of businesses.

“The challenge is the scope and complexity of the various regimes companies with high energy costs can be eligible for. Many are claiming less than they could or are not aware of the full scope of the schemes and the process.

“We think firms in Manchester could particularly benefit due to there being a higher proportion of energy-intensive businesses than other parts of the country.

“The money they can claim in a challenging business climate can make the difference between being in profit or loss. As the UK’s leading innovation funding consultancy with expertise in energy, we can help guide clients through this process.”

Leyton said its Manchester office was set up to service the company’s growing portfolio of clients from the region’s established manufacturing and engineering businesses.