Dairy Energy Savings Limited (DES) is a company set up by Dairy UK to operate the dairy sector Climate Change Agreement (CCA).
CCAs are voluntary agreements containing targets to increase energy efficiency and reduce carbon dioxide emissions. They form part of a package of UK government measures to respond to the challenges of climate change while helping industry remain competitive at global level.
Milk processing companies can enter into the dairy sector’s Climate Change Agreement through DES. By meeting their specific targets, they are entitled to a discount on the Climate Change Levy (CCL), a tax added to electricity and fuel bills. The CCL has added around 15% to company energy bills per annum. It applies to electricity, coal and hydrocarbon derivatives such as orimulsion and petcoke, natural gas and liquid petroleum gas (LPG).
Companies meeting their CCA targets are entitled to a 90% discount for electricity and a 65% discount for other fuels.
The first phase of the scheme called for 22.5% improvement in energy efficiency between 1998 and 2010. The sector achieved an impressive 27.9% improvement that is a reduction of 257,337 tonnes of CO2.
The second phase of the CCA scheme started in April 2013 after a two-year consultation and a lengthy evidence gathering and target negotiation process in 2012. The Government initially put forward a target proposal of a further 27% improvement in energy efficiency. Dairy Energy Savings conducted a comprehensive energy best practice survey to ascertain the actual level of energy reduction potential remaining in the sector. With this evidence, an agreement was reached with Government for a reduced target of 13.6%.
All milk processing sites, regardless of size or Dairy UK membership, are entitled to register with Dairy Energy Savings Ltd.
DES provides the following services to its members:
- CCA data collection
- CCA data checking
- Reporting CCA data to the Environment Agency
- Collecting Environment Agency Fees
- Processing new applicants
- Processing changes to agreements