The ECA Scheme for Energy Saving Technologies encourages businesses to invest in energy-saving plant or machinery specified on the Energy Technology List (ETL) which is managed by the Carbon Trust on behalf of Government.

The ECA scheme allows businesses to write off the whole cost of the equipment against taxable profits in the year of purchase.  This can provide a cash flow boost and an incentive to invest in energy-saving equipment which normally carries a price premium when compared to less efficient alternatives. The ETL specifies the energy-saving technologies that are included in the ECA scheme.

So if your business pays corporation or income tax at 28%, every £1,000 spent on qualifying equipment would reduce its tax bill in the year of purchase by £280. In contrast, for every £1,000 spent, the generally available capital allowance for spending on plant and machinery would reduce your business’s tax bill in the year of purchase by £56. In other words, an ECA can provide a cash flow boost of £224 for every £1,000 it spends in the year of purchase.

Loss-making companies can now also realise the tax benefit of their investment in ETL qualifying technologies with Payable ECAs by surrendering losses attributable to
ECAs in return for a cash payment from the Government.

The amount payable to any company claiming payable ECAs will be expressed as 19% of the loss that is surrendered. So if a company surrenders a loss of £100,000, the Payable ECA it will receive is £19,000. Payable ECAs will, however, be capped.
The maximum credit claimable is limited by the total of the company’s PAYE and National Insurance payments for the year in which the claim is made or, if greater, £250,000.

What installations are reduced-rated?

The reduced rate applies to the installation of certain heating equipment in the sole or main residence of a qualifying person.  This includes the price of the equipment itself.

One of the types of equipment allowable under the scheme is air source heat pumps: These use the air as a source of heat. Some air source heat pumps can be reversed so that they draw heat from inside a building, thus providing cooling during the summer as well as indoor heating for colder periods of the year.

Operators / End Users Responsibility under F-Gas Regulation EC No 842/2006

The obligations in the new regulation for stationary refrigeration systems with more than 3kg of F-gas HFC refrigerant came into force on July 4th 2007 and are as follows:

General obligations to prevent leakage: Using all measures which are technically feasible and do not entail disproportionate cost operators must: (a) prevent leakage of HFC refrigerants and (b) as soon as possible repair any detected leakage.

Regular leak testing: Systems must be checked for leakage by certified personnel on a regular basis. “Checked for leakage” means that the equipment or system is examined for leakage using direct or indirect measuring methods, focusing on the parts of the equipment or system most likely to leak. The frequency of testing depends on the refrigerant charge:

Systems with 3kg to 30kg must be checked annually.
Systems with 30kg to 300kg must be checked once every six months.
Systems with more than 300kg must be tested once every three months.
Systems must be re-checked within one month after a leak has been repaired to ensure the repair has been effective (this can be carried out at the time of the repair).

Plant with more than 300kg must be fitted with an F-gas leak detection system, which is defined as: “a calibrated mechanical, electrical or electronic device for detecting leakage of refrigerants which, on detection alerts the operator”. The detection system must be checked at least once a year to ensure proper functionality.

For any plant fitted with a leakage detection system, the frequency of leak checking can be halved, although an annual check remains the minimum frequency.

Maintaining records: Records must be kept about each system with more than 3kg of F-gas HFC refrigerant.
The records must include:
The quantity and type of HFC refrigerants installed in each system.
The quantity of refrigerant added.
The quantity of refrigerant recovered during servicing, maintenance and final disposal.
Other relevant information including the identification of the company or technician who performed the servicing or maintenance, as well as the dates and results of leakage checks and leakage detection checks.
These records shall be made available on request to the competent authority and to the commission.

Gas recovery: If F-gas refrigerant needs to be removed from a system (e.g. to gain access to part of a system for maintenance or during system de-commissioning at the end of life) it must be properly recovered by certified personnel. After recovery the refrigerant can be reused or sent for reclamation or destruction.

Use of adequately qualified staff: Personnel carrying out leak testing, gas recovery, installation and maintenance must have a suitable refrigerant handling qualification.

Labelling: Any new system placed on the market must clearly state the type and quantity of refrigerant used.

R22 is a single hydro chlorofluorocarbon or HCFC compound. It has low chlorine content, ozone depletion potential and only a modest global warming potential. – ODP = 0.05, GWP = 1700

Phase out dates for R22

1.    From 1 July 2002 no more cooling only air conditioning equipment can be manufactured that uses refrigerant R22.

2.    From 1 January 2004 no more heat pump equipment can be manufactured that uses refrigerant R22.

3.    After 1 January 2010 no more virgin refrigerant R22 can be used in existing systems.

4.    After 2015 no more recycled refrigerant R22 can be used in existing systems.

The phase out dates should not cause you concern, your system will only require additional refrigerant should a leak or major repair be required and this can be effected within current legislation until 2015.

Mandatory inspections have been introduced for all air conditioning systems with rated cooling output greater than 12kW. This includes the combined output of one or more individual air conditioning units in a building.

If your air conditioning system has a rated output greater than 250 kW, you must have had your first inspection by 4th January 2009.

If your air conditioning system has a rated output greater than 12kW, but less than 250kW you must have had your first inspection by 4th January 2011.

Thereafter, inspections will be required every 5 years. This is now law.

For new systems installed on or after 1 January 2008, the first inspection must have taken place within 5 years of the installation date.

TAC helps leading accident management company keep their cool

TAC complete restaurant project with time to spare.

TAC have been awarded the contract to complete the Air Conditioning on a multi million pound villa in the south of France.

TAC awarded ductwork alteration contract by high street giants.

Thermotech, established in 2000 by David Prendergast, installs and maintains fire protection systems for retailers and has a turnover of £2.4 million. Its contracts with Marks & Spencer, Toys R Us and Boots give it responsibility for maintaining sprinkler systems in 700 stores throughout the UK. Meanwhile TAC, set up in 2006 by Chris Anderson, installs and maintains air conditioning systems and has a turnover of £1.8 million.

Both businesses will now be brought together under the ownership of one company, with David Prendergast and Chris Anderson as majority shareholders and Graham Norfolk of Acorn Capital Partners joining the board.

Ian Hardman & Peter Smith, directors of Yorkshire Bank’s Specialist & Acquisition Finance team, led the transaction for the Bank. Smith said: “Thermotech and TAC are two successful local companies with high quality clients and knowledgeable management teams.

Hardman added: “The deal will allow them to benefit from synergies and cross-selling opportunities and branch out into related areas. In the longer term, it will enable them to expand their offering and create additional value by pursuing a ‘buy and build’ strategy to develop a group offering a wide range of complementary services.”

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