Service level agreement

Submitted on 21 Jun 2024

1. Background

The National Farmers Union (NFU) is the trade association that has set up and operates Climate Change Agreements (CCAs) with the Environment Agency (EA) in three sectors. These sectors are pig farming, poultry farming and protected horticulture and they allow participants to claim Climate Change Levy (CCL) discount. Full details of the legislative framework covering CCAs can be found at https://www.gov.uk/guidance/climate-change-agreements--2.
Any operator of a facility that carries out eligible pig farming, poultry farming or protected horticulture activities and who wants join a CCA must do it through the NFU.
NFU Energy provides the day to day operation of the NFU CCAs. This document details the scope of services provided by NFU Energy to businesses that participate in the scheme.

For businesses that pay the appropriate fees as detailed in our CCL Scheme charging structure NFU Energy will:

Advise you on an appropriate structure for your CCA.
Collect the information from you that the EA need to consider a CCA application.
Use the information you provide to complete a CCA application on your behalf and submit it to the EA.
Use your historic energy and production data from an appropriate (and eligible) “base year” to calculate energy efficiency targets for your facility/facilities.
Help you to answer queries from the EA relating to your CCA application.
These services are based on an average application requiring 5 hours of consultant time to complete. If an application takes significantly longer than this we reserve the right to charge fees in addition to our standard new joiner fee. This additional time is charged at £95.00/hour + VAT to NFU members and £150/hour + VAT to NFU non-members.

Collect energy use and production data from you covering the period 1^st January to 31^st December inclusive, at least once every two years.
Process the data you provide into a format that is needed by the EA for submission and comparison with targets set in your CCA.
At each Target Period end inform you of your performance against your target. This will include details about your carbon dioxide surplus or deficit and whether you need to make a buyout payment to remain in the scheme.
Provide guidance and advice on compliance with the requirements of your CCA.
Process simple changes to your CCA with the EA. This to include changes in the name of your responsible person or simple changes in business name.
In the event of an EA audit of your facility/facilities, provide summary data of the information that we have previously submitted to the EA on your behalf.
Collectively represent the interests of all the NFU’s CCA holders. This to cover any changes or modifications to the CCA framework and/or specific regular reviews such as target reviews, compliance requirements etc.

Return data to us as specified and when requested. As a minimum this must include energy use and production data which covers each entire CCA target periods.
Retain an audit trail to substantiate any data or information you provide to us and which we subsequently submit to the EA on your behalf.
Comply with the qualitative and quantitative requirements of your CCA including the regular updating (at least annually) of all key CCA documents including 70/30 calculations, site plans, process descriptions and PP10/PP11 forms. Full details of your compliance requirements can be found at http://ccl.nfuenergy.co.uk/your-responsibilities.
Within 20 working days, notify us of any significant changes that may impact on your CCA. This particularly relates to changes in operator, named contact, or name of the CCA holder. Once we receive this information from you we will advise you of any action that needs to be taken and notify the EA accordingly.

We will not notify your energy suppliers, or HRMC, about your eligibility for CCL relief. It is your responsibility to complete a PP10 and PP11 where necessary.
We do not analyse any energy invoices on your behalf to sum your energy use.
We will not deal with any billing disputes with your energy suppliers.

If you wish NFU Energy to carry out the above on your behalf you will be charged in addition to the standard CCL Scheme fees. NFU Energy’s time spent carrying out such work for members is charged at £95.00/hour + VAT to NFU members and £150/hour +VAT to NFU non-members.

Our CCL fees are published on the NFU Energy website https://ccl.nfuenergy.co.uk/about.
Fees for new facilities are invoiced at the time you instruct us to work on your behalf.
Annual fees are payable in April of each year of membership.
Our invoice may include an element covering annual administration fees due to the EA. Where this is included NFU Energy will, upon receipt of your payment, pass this fee element on to the EA on your behalf.
All invoices are subject to NFU Energy’s standard terms and conditions for the supply of goods and services and are due for payment within 28 days of issue. A copy of our terms and conditions is available here.
If you do not pay within the period set out above, we will suspend our service until payment is received. We also retain the right to notify the EA that your CCA should be terminated. This could ultimately result in your loss of CCL discount.

You can choose to terminate your CCA at any time. Where you wish to do this you should advise us in writing. We will advise the EA of your instruction. The EA will notify you when the agreement has been terminated. You are then no longer eligible to claim CCL relief.
Where appropriate, NFU Energy will refund you for the proportion of your membership fees covering the part year when you have left the scheme. Please note however that no refunds are available on the Annual EA administration fee. NFU Energy will advise you of any outstanding fees at the time of termination.