FAILURE BY COMPANIES TO MEET their climate change agreement targets could ultimately cost UK industry, according to a major utility specialist.

At its Climate Change Levy Conference in June 2002, the Energy Information Centre (EIC) reported that timing is now critical for customers preparing for the end of the milestone year with regard to climate change agreements. The agreements entitle holders, mainly manufacturers, to an 80% rebate on climate change levy in return for undertaking a contracted energy management programme. This includes beating an annual energy target each alternate year over the next ten.

EIC has expressed fears that many businesses have underestimated the work required to reach the targets, meaning they run the risk of losing rebates worth in excess of 10% on electricity prices from April 2003.