A commitment to freeze the Climate Change Levy (CCL) main rate for LPG (liquefied petroleum gas) at the 2019-20 level until at least April 2022 has been hailed as ‘a significant show of support’ to the industry.
Flogas Britain believes the announcement in the Autumn Budget last Wednesday (November 22) positively reinforces the fuel’s role in cleaning up the UK’s off-grid energy mix.
Lee Gannon, managing director, said: “We at are delighted with the outcome of the Budget with regards to the CCL rate for LPG. The Treasury would not ordinarily set levy freezes for longer than a 12-month period, so its departure from ‘the norm’ in this instance serves as a significant show of support to the industry.
“This was a carefully considered and wholly logical step on the Chancellor’s part – providing industry stakeholders with vital reassurance that LPG is being taken seriously as a fuel that can help decarbonise off-grid homes and businesses on a national scale.
Flogas also believes the announcement positively reinforces the vision set out in the government’s recently launched Clean Growth Strategy, which made public intentions to reduce dependence on high-carbon fossil fuels – particularly oil, and particularly in parts of the country with no mains gas access.
Lee continued: “Put simply, LPG is the lowest carbon conventional off-grid fuel available today. Add to that the fact that it is cost-effective and readily available through Flogas’ robust, long-established national delivery network, and it’s easy to see just how big an impact it will continue to have in reducing emissions from off-grid heating.
“Scores of homes and businesses have already made the switch from oil to LPG, and we expect to see many more follow suit in the next few years. The CCL freeze will only serve to support our efforts further, so we would like to thank the Chancellor for his foresight on this matter. We also look forward to continuing to work closely with ministers to develop a clear policy framework for the Clean Growth Strategy as it rolls out.”