Could Your Business Be Paying Too Much Tax on Energy?

For many manufacturers, energy is a significant business cost, so finding ways to reduce what you pay can make a real difference. One area that’s often overlooked is the tax and charges included within your energy bills.

If your business carries out certain mineralogical or metallurgical processes, you could potentially reduce your Climate Change Levy (CCL) costs through the Mineralogical and Metallurgical Exemption scheme – MiNMET.

What is MiNMET?

MiNMET allows businesses carrying out qualifying mineralogical or metallurgical processes to receive an exemption from the main rates of CCL on qualifying electricity and gas.

The scheme is administered by HMRC and was introduced to help energy-intensive UK industries remain competitive.

The potential saving can be significant, with up to 100% CCL relief available on qualifying electricity and gas..

Why does this matter for manufacturers?

If your business uses significant amounts of electricity or gas, CCL can add a sizeable amount to your energy bills.

It’s easy to focus on the unit price of energy while overlooking the taxes and charges that sit alongside it.

That’s why it’s worth looking at your whole energy bill, not just the headline rate.

For every 1 million kWh of electricity or gas, there is a potential rebate of around £8,000 per annum for up to four years, meaning a potential £32,000 rebate on 1 GWh.

If your business carries out qualifying processes, MiNMET could help reduce your energy costs without changing how much energy you use.

Could you claim for previous periods?

In some circumstances, MiNMET claims can be backdated, provided the business can demonstrate that it was eligible and has the necessary evidence to support the claim.

For manufacturers who have never looked into MiNMET, reviewing historic energy bills could therefore be worthwhile.

Could your business qualify?

MiNMET isn’t simply based on being an energy-intensive manufacturer. Eligibility depends on the specific processes your business carries out.

If you’re unsure whether your processes could qualify, it’s worth getting them reviewed rather than assuming you’re not eligible.

How GLEG can help

At GLEG, we help businesses look beyond their energy unit rates to identify opportunities to reduce their overall energy costs.

We’ve helped businesses save considerable amounts of money by identifying opportunities around energy taxation, exemptions and other charges that can easily be overlooked.

For manufacturers, that can include looking at CCL exemptions, energy taxation, procurement and historic billing to make sure you’re not paying more than you need to.

If your business carries out mineralogical or metallurgical processes, MiNMET is definitely worth looking into.

Want to find out if your business could benefit? Get in touch with the GLEG team at hello@gleg.co.uk.