Cost Breakdown

Low Carbon Buildings Programme - Cost & Technical Details

This spreadsheet is dsigned to help you to calculate the eligible costs for grant support towards your proposed project. Since the Programme has been notified to the European Commision on State Aid and cleared to provide government aid to both public and private sector applicants, there are a number of constraints and eligibility criteria required by the Commission when awarding aid to eligible projects. This spreadsheet asks you to provide information on technical details, energy yields, costs, benefits and any savings to provide an indicator of the amopunt of potential grant you would be eligible to apply for. Please only complete the white shaded cells. Guidance has been provided to help you complete the relevant information requirements (see the sheet labelled 'guidance'). If you require further help completing this form, please contact the Energ Saving Trust at: [email address]

State Aid & Eligible costs

Important Note: Under EU State Aid Legislation, the value of any benefits (e.g. value of generated electricity) arising from the microgeneration installation must be deducted and the value of any additional costs (e.g. extra maintenance or operation costs when compared to conventional generation of heat and/or power) must be added to the eligible costs before the grant is calculated. Please therefore provide the likely benefits and costs in the cells provided as accurately and truthfully as you can. Any material inaccuracies may mean that any grants that have been paid may become repayable with interest. The value of these benefits and costs is not deducted for Public Sector applicants but the information (where applicable) should still be provided to help with the assessment process. Please refer to the Grant Terms & Conditions and guidance notes for further information.

Project Details

Please complete the white shaded cells only. The yellow shaded cells contain formulas.

Eligible Costs of all technologies

Applicant Name

Mountgrange (Calton Gate) Limited

Non-undertaking

** 3348600 *

Undertaking - SME

** 1983867 *

Funding Category

Undertaking

see guidance notes on definitions of undertakings & SMEs

Undertaking

** 1983867 *

Maximum Grant level

** 40%

Project Type

Traditional Build

please indicate the type of contract - this may impact on your eligible costs

Total Building Project Value

Greater than �25M

please indicate the size of contract for the total project - this will impact on your eligible costs

Notional Value of Carbon Trust Support

** 56250 *

Total Costs of all technologies

** 1983867 *

Total Eligible Cost

** 1972617 *

Maximum grant available

** 789046.8 *

Traditional Build

D&B or PFI

Grant requested

789046.8 *

please insert the amount of grant requested - NB the amount of grant offered and paid may differ from this value, following a check on your costs.

Not applicable - Stream 2A application

Grant Rate

** 40%

Less than �5M

29,250

Less than �5M

28500

Total System capacity over all technologies

** 675 *

Between �5M and �25M

43,500

Between �5M and �25M

43500

Total Cost per kW

** 4960.88888888889 *

Greater than �25M

56,250

Greater than �25M

56250

Total Estimated Annual Energy Generation

** 12857 *

Technical Details

Solar Photovoltaic

Solar Thermal Hot Water

Wind Turbines

Small Hydro

Heat Pumps

Biomass Heating

Biomass CHP

Other

Accredited Installer Company Name

Geothermal Interantional Limited

Due Diligence assessment to have been undertaken by LCBP technical managers (see guidance notes)

Accredited Equipment manufacturer and model

PV Modules Type 1

Solar Collector Type 1

Wind Turbines Type 1

Hydro Turbine Type 1

Heat Pump Type 1

Water Furnace, EKW130

Boiler or Stove Type 1

System type 1

PV Modules Type 2

Solar Collector Type 2

Wind Turbines Type 2

Heat Pump Type 2

Boiler or Stove Type 2

System type 2

Inverters Type 1

Inverters Type 2

System capacity (Peak Power)

System capacity (Peak Power) - see note

System capacity (Peak Power at 12 m/s)

System Capacity (Peak Power)

675 *

System Capacity (Peak Power)

System Capacity (Peak Power) - Electricity

System Capacity (Peak Power)

System Capacity (Peak Power) - Heat

Estimated Annual Energy Generation (kwH/yr)

Estimated Annual Energy Generation

12857 *

Estimated Annual Energy Generation

Estimated Annual Generation - Electricity

Estimated Annual Energy Generation

Percentage of building estimated annual electrical requirement met by this installation

Percentage of estimated annual DHW requirement met by this installation

Percentage of estimated annual electrical requirement met by this installation

Proportion of estimated annual thermal requirement met by this installation

100%

Proportion of estimated annual thermal requirement met by this installation

Percentage of electricity likely to be exported

Estimated Annual Generation - Heat

Cost Details

NB: see guidance notes for full details of eligible costs.

Design and Project Management

60000 *

Accredited Equipment cost

875000 *

i.e. the PV module, Wind Turbine, Boiler etc.

Balance of System Equipment cost

816000 *

e.g. electrical wiring, fixings, pipework, ducting etc.

Labour costs

Included Above

Associated costs

83000 *

e.g. scaffolding, cranage etc.

Connection costs

0 *

e.g. DNO charges for grid connection, metering etc.

Other

** 1514600 *

Describe:

As per Section D Item 3 Funding

Sub Total

** 0 *

** 3348600 *

** 0 *

Cost of comparable conventional thermal plant

836000 *

i.e. that this installation is replacing e.g. cost of conventional gas fired plant

Benefits

Value of any Enhanced Capital Allowance

0 *

refer to guidance notes

Annual Value of displaced energy (input pence per kWh)

** 0 *

Annual Value of exported electricity (input pence/kWh)

** 0 *

Annual Value of ROCs (input ROC price (input pence/kWh)

** 0 *

Annual Value of LECS (input LEC price/kWh)

** 0 *

Any additional cost savings over the first 5 years of operation

** 528733 *

e.g. reduced maintenance costs

Total value of Revenue over 5 years

** 0 *

** 528733 *

** 0 *

Any additional operating costs over first 5 years

e.g. maintenance, additional fuel cost etc.

TOTAL

** 0 *

** 1983867 *

** 0 *

i.e. Total cost minus value of revenue over 1st 5 years

please provide any further explanatory notes on the above costs where deemed necessary

Please see breakdown of costs in Section D Item 3 Funding

Cost Breakdown - worked example

Low Carbon Buildings Programme - Cost & Technical Details

Applicant Name

Low Carbon Developers Ltd

Funding Category

SME

Maximum Grant level

50%

Traditional Build

Total Building Project Value

Less than �5M

Notional Value of Carbon Trust Support

29250 *

Eligible Cost of all technologies

93395 *

Total Eligible Cost

87545 *

Maximum grant available

43772.5 *

Grant requested

Grant Rate

Total System capacity over all technologies

24.4 *

Total Cost per kW

4020.49180327869 *

Total Estimated Annual Energy Generation

20000 *

Technical Details

Solar Photovoltaic

Solar Thermal Hot Water

Wind Turbines

Small Hydro

Heat Pumps

Biomass Heating

Biomass CHP

Other

Accredited Installer Company Name

Acme Solar

Acme Wind

Due Diligence assessment to have been undertaken by LCBP technical managers (see guidance notes)

Accredited Equipment manufacturer and model

PV Modules Type 1

BP Solar BP7180

Solar Collector Type 1

Thermomax Mazdon 30 tube

Wind Turbines Type 1

Proven WT6000

Hydro Turbine Type 1

Heat Pump Type 1

Boiler or Stove Type 1

System type 1

PV Modules Type 2

Sharp NT-R5E2E

Solar Collector Type 2

Wind Turbines Type 2

Heat Pump Type 2

Boiler or Stove Type 2

System type 2

Inverters Type 1

SMA SWR2500

Inverters Type 1

SMA SWA2500

Inverters Type 2

System capacity (Peak Power)

10 *

System capacity (Peak Power) - see note

8.4 *

System capacity (Peak Power at 12 m/s)

6 *

System Capacity (Peak Power)

System Capacity (Peak Power) - Electricity

System Capacity (Peak Power)

System Capacity (Peak Power) - Heat

Estimated Annual Energy Generation

7500 *

Estimated Annual Energy Generation

5500 *

Estimated Annual Energy Generation

7000 *

Estimated Annual Energy Generation

Estimated Annual Generation - Electricity

Estimated Annual Energy Generation

Percentage of building estimated annual electrical requirement met by this installation

Percentage of estimated annual DHW requirement met by this installation

50%

Percentage of estimated annual electrical requirement met by this installation

Proportion of estimated annual thermal requirement met by this installation

Percentage of electricity likely to be exported

10%

Percentage of electricity likely to be exported

Estimated Annual Generation - Heat

Cost Detail

NB: see guidance notes for full details of eligible costs.

Design and Project Management

1000 *

1200 *

1000 *

Accredited Equipment cost

30000 *

4200 *

6000 *

i.e. the PV module, Wind Turbine, Boiler etc.

Balance of System Equipment cost

25000 *

3400 *

6000 *

e.g. electrical wiring, fixings, pipe work, ducting etc.

Labour costs

4000 *

2300 *

3500 *

Associated costs

4000 *

1000 *

e.g. scaffolding, cranage etc.

Connection costs

1000 *

e.g. DNO charges for grid connection, metering etc.

Other

3500 *

Describe:

Tower foundations

Sub Total

65000 *

12100 *

21000 *

0 *

Cost of comparable conventional thermal plant

i.e. that this installation is replacing e.g. cost of conventional gas fired plant

Value of any Enhanced Capital Allowance

120 *

Benefits

Annual Value of displaced energy (input pence per kWh)

375 *

110 *

315 *

0 *

Annual Value of exported electricity (input pence/kWh)

0 *

14 *

0 *

Annual Value of ROCs (input ROC price in pence/kWh)

75 *

70 *

0 *

Annual Value of LECS (input LEC price/kWh)

0.4

30 *

0.4

28 *

0 *

Any additional cost savings over the first 5 years of operation

500 *

e.g. reduced maintenance costs

Total value of Revenue over 5 years

** 2900 *

550 *

2135 *

0 *

Any additional operating costs over 5 years

500 *

e.g. maintenance, additional fuel cost etc.

TOTAL

** 62100 *

11430 *

19365 *

0 *

i.e. Total cost minus value of revenue over 1st 5 years

please provide any further explanatory notes on the above costs where deemed necessary

Guidance

Guidance about use of assumptions when calculating eligible costs

Nov-06

How to use this spreadsheet

In order to help you calculate the eligible costs for your project, you are asked to provide information on the costs, benefits and any savings for your (microgeneration) project. Please review the guidance below before completing the spreadsheet.

How are eligible costs and indicative grants calculated?

Eligible costs are calculated by adding together the costs relating to the purchase and installation of eligible technologies and deducting the net savings from the total costs and then applying the relevant percentage. This is why it is important for EST to know how your costs are derived and any benefits gained from installing eligible technologies. any grant amount offered will be a maximum grant award. Any grant paid will be based on actual costs and benefits incurred/received following completion of the project.

State Aid

What are the State Aid Rules?

The State aid rules are set out in Articles 87 and 88 of the EC Treaty. The State aid rules are designed to promote free trade by preventing state resources from being used to subsidise certain businesses unfairly. The rules apply when Governments provide money (e.g. grants or loans) or goods or services (e.g. consultancy advice) below their market value. The State aid rules only apply when a benefit is provided to an "undertaking". If your organisation is not an undertaking, the State aid rules will not apply to your organisation.

Community Grants under the Low Carbon Buildings Programme will only be awarded to organisations that are not undertakings.

Project Details

Funding category

Please choose the applicable funding category from the drop down list to ensure the correct percentage of eligible grant for your project. See guidance on definitions of an 'undertaking' and 'non-undertaking' and an SME below.

What is an Undertaking?

An undertaking is an organisation or individual that carries on an economic activity. The following types of organisations will be undertakings for the purposes of the State aid rules:

�� Sole traders;

�� Partnerships running a business;

�� Companies running a business.

The following types of organisations are not usually classified as undertakings (i.e. non-undertakings):

�� Private individuals acting in a personal capacity;

�� Local Authorities;

�� Schools, Colleges and Universities;

�� Community groups that do not carry on any business or trading activities.

If your organisation carries on some form of commercial activity, then even if the commercial activity is only a small part of your organisation's operations, your organisation may still be classified as an undertaking under the State aid rules. EST will be able to give general advice on the definition of an undertaking and will be able to direct enquirers to further sources of information but ultimately an organisation will have to decide for itself whether it is an undertaking.

The examples below provide guidance on the way in which certain types of organisation are likely to be classified. Please note that these examples are illustrations only and in each case you will need to assess your organisation's activities to determine whether your organisation is an undertaking.

Example 1

A community group owns and manages a community hall. The community group rents the hall out to local clubs and charges a nominal fee to cover electricity costs. The community group also arranges various fund-raising events such as jumble sales and sponsored walks to raise funds for the hall. The community group does not raise funds in any other way. The community group is not an undertaking.

Example 2

A charity is set up to protect local wildlife. The charity raises funds through donations and by selling gifts through a mail order catalogue. All the profits raised by sale of goods through the catalogue are used to protect local wildlife. The charity is an undertaking because it carries on commercial activities by selling goods through the catalogue.

Example 3

A Housing Association provides affordable housing for people in need. The Housing Association is not involved in any commercial property developments. The Housing Association is not an undertaking.

What is an SME (small to medium sized enterprise)?

An SME is an organisation that has fewer than 250 employees and that satisfies at least one of the following conditions:

¬ Annual turnover not exceeding €50million; and/or

¬ Annual balance sheet total not exceeding €43million.

When calculating headcount, turnover and balance sheet totals, you must also include employees, turnover and balance sheet totals of "linked enterprises" and "partner enterprises".

Project type

Please indicate the type of contract the project will be delivered under. This may have an impact on your eligibility and the level of support received from the Carbon Trust Technical Support Consultant.

Where this spreadsheet is being used to support an application for Stream 2A funding (i.e. max �100k), please pick this project type form the drop down list accordingly.

Where your project is part of a larger Private Finance Initiative (PFI), details of the PFI contract will be required as part of your application for grant. Projects delivered through PFI are likely to be constrained under State Aid rulings.

Project value

Please indicate the total project cost by picking from the appropriate drop down list. Larger scale projects will receive more support from the Carbon Trust Technical support Consultants as a rule.

Grant requested

Please enter the amount of grant requested for the proposed project. This must not be more than the maximum eligible grant (see row above). Since the funding is limited and issued through a competitive bidding process, applicants that request lower grant amounts than entitled to receive will score more highly as a result.

Technical details

Please provide details about the equipment being specified; the anticipated energy yields from the microgeneration system(s); and the estimated contribution this will make towards the building's (development) energy loads.

Cost details

Please provide cost details for your project for each eligible technology being specified - this should include costs for: design & management; equipment costs; labour costs; associated costs (e.g. access costs); connection costs (where relevant); and other costs (i.e. any eligible costs not defined by any previous heading).

Where you are installing a technology that provides an alternative heat and/or power supply to your building (development), you will be required to provide an estimate of the comparable costs where the heat and/or power requirements of the building (development) were to be met with conventional heat and/or power plant. e.g. where using biomass boilers instead of gas or oil fired boilers, you must provide cost comparisons for these conventional heat providers.

Benefits

Please provide details of any other benefits delivered through the installation of the proposed eligible technologies:

Where specified technologies are eligible for Enhanced Capital Allowances, please insert a value in �s for any benefit attributable to the eligible technology for grant.

Please provide a value for the annual displaced energy in pence/kWh resulting from the installation of each eligible microgeneration technology on your building.

Please provide a value of the annual exported energy in pence/kWh from each eligible technology where relevant.

Please provide a value for any annual Levy Exemption Certificates in pence/kWh resulting from the installation of eligible technologies.

Please provide a value for any ADDITIONAL maintenance and/or operating costs for the eligible technologies when compared to conventional heat & power plant. E.g. where installing a grid connected electricity generating system, any extra maintenance costs should be compared with a zero maintenance cost for importing electricity from the National Grid. Where installing heat generating technologies, only the additional costs compared to operating and maintaining conventional heating plant (e.g. gas boilers) should be entered.

Domestic energy prices

Please refer to the sheet titled 'domestic Electricity prices' for projections of average electricity prices in the domestic sector between now and 2020.

The table shown provides indicative prices for electricity covering a range of price scenarios: low price, central (prepaid), central (credit), high price.

NB these projections are taken from the digest of DTI energy statistics.

Where your project is in the domestic sector, please provide indicative energy savings from displaced energy costs for the first 5 years of operation.

Non-domestic energy prices

Please refer to the sheet titled 'non-domestic energy prices' for past and current prices of energy for different scales of non-domestic user.

Projections of prices for non-domestic users are not available and therefore applicants are advised to consult their energy suppliers for price forecasts where known.

NB these tables provide prices for different scales of user for both electricity and gas. There are 2 tables, one showing prices excluding the Climate Change Levy and one including the CCL. Where your organisation has already installed energy efficiency measures, it may already receive Levy Exemption Certificates.

NB although price forecasts are not available, applicants should take note of the trends in prices over the 2.5 years shown. Electricity prices steadily rose between 2004 & 2005, with signs of stable prices emerging in 2006. Prices of gas similarly rose between 2004 and 2005, but have reduced across all scales in quarter 2 of 2006.

Applicants are advised to present their assumptions about future energy costs in space for notes on this sheet and/or in their application for grant (see section D of the application form).

Carbon Trust support costs

NB Not applicable for Stream 2A applicants

For St2B applicants - the value of the CT service is attributable to the size of the project (total project value) and the method of delivery (traditional build; PFI; Design & Build).

Since this service constitutes an eligible cost, a small proportion will be deducted from the overall granted amount. Please ensure you pick the applicable project scale from the drop-down list to ensure the right amount is calculated for the eligible contribution of the CT support service.

ROC price assumptions

Where applicants will be in receipt of Renewable Obligation Certificates (ROCs), they will be required to estimate the likely income stream from the sale of ROCs for the first 5 years of operation of the eligible technologies.

Please refer to the sheet titled 'ROC prices' for an indication of ROC prices sold at auction through the NFPA. The NFPA is an agency set up by the 12 regional Electricity Companies to act as their agent to enter into collective arrangements to discharge their orders under the 1989 Electricity Act.

Commercial applicants should clearly state their assumptions about ROC prices over the first 5 years of operation of their renewable electricity generating system, when requesting a grant.

Applicants will be required to provide evidence where the ROC prices differ significantly from those recorded to date.

Please provide indicative ROC prices received in p/kWh when inputting data into the spreadsheet.

NB small scale renewable generation may not achieve the average ROC prices indicated on the ROC prices' sheet, although amendments to the Renewables Obligation in April07 are likely to address this issue by allowing aggregation of small-scale generation by ROC consolidators or agents.

Climate Change Levy and Levy Exemption Certificates

As commercial users of energy, businesses are subject to a levy on the price of energy, known as the Climate Change Levy, which came into effect on 01/04/2001.

The amount of the Levy differs for electricity and gas purchased - please refer to the table on the sheet tilted 'non-domestic energy prices for the cost of the Levy.

Energy produced from designated renewable sources is exempt from the CCL, and the generator is issued with exemption certificates which can be bundled with the power if sold to an energy supplier.

The presence of a certificate allows the renewable generator to charge a premium price for renewable power. The reason for this is straightforward. If the electricity is exempt from CCL the supplier can either reduce the price of its power, thus passing the saving on to the customer and increasing its own competitiveness in the electricity market. Or, it can charge the customer full CCL and add the difference to its own operational margin. In either case, the presence of a CCL Exemption Certificate is worth something to the supplier, and the generator can therefore charge more for a MWh from a renewable source. The market seems to expect that this value will be split by the generator and the supplier, though the exact proportion of this cut depends on the deal struck by generator and supplier.

The Energy Saving Trust advice document to those considering Combined Heat and Power schemes suggested that the value to generators may normally be as much as 80% of the levy price. Applicants should provide evidence to support any value attributed to the Levy Exemption certificates received.

Please provide the price for the CCL exemption certificates in p/kWh.

Enhanced Capital Allowances

The Enhanced Capital Allowance Scheme enables businesses to claim 100% first year capital allowances on investments in energy saving technologies and products. Businesses are now able to write off the whole cost of their investment against their taxable profits of the period during which they make the investment.

Enhanced Capital Allowances will encourage businesses to invest in low carbon technologies.

For further information about eligible products that qualify for ECAs, please go to the ECA website:

http://www.eca.gov.uk/etl/homepage.asp

Please consult the sheet tilted 'ECAs' for a list of the products eligible for ECAs at the date this document was created. NB always check the website above for the latest qualifying list and criteria.

Please provide the indicative value of any ECAs over the first 5 years of operation for eligible technologies only.

NB For alternative heat provision - although you are entitled to receive ECAs on the full capital cost of eligible plant, you only need to enter the value of the ECAs proportional to the marginal cost difference between conventional boiler plant (i.e. gas boilers) and the biomass boiler plant. This will not be the case for Solar Thermal plant where you should include the ECA value for the full capital cost of the SWH plant.

domestic energy prices

Forecast electricity prices - domestic sector					Nov-06

Where forecasts of domestic energy prices are not known, applicants can utilise the table below to support their calculation of eligible costs:

LCBP guidance on projected average domestic electricity prices
year	low	central	central (credit)	high
2000	8.277 *	8.277 *	8.277 *	8.633 *
2005	8.633 *	8.633 *	8.633 *	9.529 *
2010	7.782 *	8.153 *	8.525 *	9.529 *
2015	7.782 *	8.153 *	8.525 *	9.529 *
2020	7.782 *	8.153 *	8.525 *	9.529 *

non-domestic energy prices

Past & Current energy prices - Non-domestic sector

Nov-06

Prices of fuels purchased by non-domestic consumers

in the United Kingdom (excluding the Climate Change Levy)

Pence per kWh

2004

2005

2006

Size of

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

Fuel

consumer

quarter

Electricity

Very Small

5.83

5.91

6.07

6.14

6.29

6.56

6.79

6.98

7.30

7.88

Small

5.09

4.91

4.43

5.35

5.57

5.74

6.32

6.54

6.66

Medium

3.75

3.81

3.59

4.51

4.91

5.09

6.06

6.66

6.48

Moderately Large

3.30

3.39

3.97

4.27

4.25

4.36

5.53

5.98

5.91

Large

3.14

3.04

3.39

3.93

4.10

4.06

4.08

5.04

5.88

5.65

Very Large

2.76

2.65

2.93

3.63

3.68

3.88

4.58

5.00

5.01

Average

3.72

3.59

3.66

4.46

4.57

4.60

4.74

5.52

6.09

6.10

Gas

Very Small

1.488 *

1.363 *

1.598 *

1.42305483931475 *

1.70898815034027 *

1.76098866362864 *

1.7774407676069 *

1.98933659216547 *

2.28707278901435 *

2.17315608344826 *

Small

1.295 *

1.221 *

1.445 *

1.40072710250482 *

1.61243026268305 *

1.76071520141775 *

1.70946738204809 *

1.99300303978434 *

2.29784415967684 *

2.10250033191458 *

Medium

1.078 *

1.185 *

1.144 *

1.31817212462561 *

1.49474983519943 *

1.65590072363659 *

1.50529887491473 *

1.89702084328342 *

2.27504608282876 *

1.93680213310295 *

Large

0.982 *

0.987 *

0.862 *

1.1492471412973 *

1.36994080631673 *

1.35035321290848 *

1.2601875469871 *

1.76943692357702 *

2.30923309557537 *

1.75755203602443 *

Very Large

0.844 *

1.025 *

0.953 *

0.80102162584459 *

1.24241046262115 *

1.24317871146822 *

1.14313990832808 *

1.94481549581508 *

2.02194416828562 *

1.41088982576038 *

Average

1.162 *

1.151 *

1.15 *

1.232 *

1.488 *

1.561 *

1.443 *

1.90963388860567 *

2.25713731751507 *

1.85933479645494 *

Prices of fuels purchased by non-domestic consumers

in the United Kingdom (including the Climate Change Levy)

Pence per kWh

2004

2005

2006

Size of

1st

2nd

3rd

4th

1st

2nd

3rd

4th

1st

2nd

Fuel

consumer

quarter

Electricity

Very Small

6.04

6.13

6.39

6.44

6.61

6.88

7.10

7.2960082099147 *

7.61

8.16

Small

5.49

5.31

4.76

5.72

5.93

5.95

6.12

6.68536655134639 *

6.89

7.04

Medium

4.14

4.21

3.93

4.90

5.27

5.28

5.45

6.44189721447216 *

7.03

6.85

Moderately Large

3.64

3.65

3.73

4.28

4.56

4.57

4.68

5.85200856396669 *

6.30

6.23

Large

3.38

3.30

3.68

4.19

4.30

4.28

4.29

5.25493381113357 *

6.10

5.88

Very Large

2.98

2.86

3.11

3.81

3.84

3.89

4.10

4.82210619945481 *

5.32

5.33

Average

4.01

3.89

3.95

4.74

4.84

4.89

5.02

5.814 *

6.41

6.42

Gas

Very Small

1.61350493939663 *

1.46627122302087 *

1.68851076513554 *

1.48883357938522 *

1.83435176821139 *

1.87457846528301 *

1.86649694063039 *

2.06276337593797 *

2.38734222182245 *

2.2808444485461 *

Small

1.40636627858146 *

1.30405299734386 *

1.51322568874579 *

1.4900262888273 *

1.72525199310922 *

1.88500993620142 *

1.80590286859393 *

2.08276529977531 *

2.39328714112082 *

2.20533604643114 *

Medium

1.16365239017759 *

1.26299552969962 *

1.21492548375864 *

1.40834911274096 *

1.59638491572702 *

1.77031037837451 *

1.58776490420165 *

1.98579240759839 *

2.36704971276788 *

2.03013551543457 *

Large

1.04089358223824 *

1.03446948396887 *

0.906780118184798 *

1.21013398453697 *

1.43745105328068 *

1.41325291599554 *

1.31244821717979 *

1.83036782911716 *

2.37077102391032 *

1.81587208684486 *

Very Large

0.877579262912448 *

1.08734209237501 *

0.984871828415178 *

0.836864233677243 *

1.28741757348188 *

1.2862721920323 *

1.16964439189384 *

1.98511373298242 *

2.07399554744886 *

1.44621346639851 *

Average

1.251 *

1.225 *

1.209 *

1.304 *

1.58 *

1.655 *

1.511 *

1.98181687059025 *

2.33990458411425 *

1.93684062874388 *

Source: DTI survey of energy suppliers.

Notes: The average price for each size of consumer is obtained by dividing the total quantity of purchases, for each fuel, into their total value.

The electricity and gas prices are shown in table 3.4.1 and 3.4.2 for various sizes of consumers. These sizebands are defined in terms of the approximate annual purchases by the consumers purchasing them, as shown in the table below. The sizebands from Q1 2006 onwards differ slightly from those published in previous issues.

Annual consumption

Electricity

MWh

Gas

MWh

Very Small

0 - 20

Very Small

<278

Small

20 - 499

Small

278 - 2,777

Medium

500 - 1,999

Medium

2,778 - 27,777

Moderately Large

2,000 - 19,999

Large

27,778 - 277,777

Large

20,000 - 69,999

Very Large

277,778 - 2,777,778

Very Large

70,000 - 150,000

The Climate Change Levy (CCL) came into effect in April 2001. Information on the operation of the CCL is available on the HM Revenue and Customs web site at http://www.hmrc.gov.uk. The full rate of levy for electricity is 0.43p/kWh and for gas it is 0.15p/kWh.

ROC prices

Indicative ROC prices					Nov-06

The chart and table below are taken from the Non-Fossil Purchasing Agency (NFPA).

ROCs, Renewable Obligation Certificates, are issued under the terms of the Renewables Obligation Order, the Renewables Obligation Order (Scotland) and the Renewables Obligation Order (Northern Ireland). This is the Government's mechanism for increasing the proportion of electricity produced from renewable sources - licensed electricity suppliers are required to supply a certain percentage of their total sales from renewable sources.


Under the 1989 Electricity Act, the Secretary of State made five Orders requiring the Regional Electricity Companies (RECs) to contract for certain amounts of electricity generating capacity from renewable sources, these Orders are known as Non-Fossil Fuel Obligations or "NFFOs" for short.
Contracts for the first two Orders, 1990 and 1991, have now terminated. Contracts under the remaining three Orders will continue for many years with the last such contract not terminating until 2018.
The Non-Fossil Purchasing Agency Limited (NFPA) was set up in 1990 by the twelve RECs in England and Wales as their agent for the purpose of enabling them to enter into collective arrangements to discharge their obligations under the Orders.

NFPAS Ltd, a subsidiary of NFPA Ltd, runs the e-ROC on-line auctions on behalf of a number of clients.

For more information, go to www.e-roc.co.uk.

AVERAGE ROC PRICES

















THE FIGURES AT A GLANCE

Auction Date	Average	Lowest	Total Number of ROCs	Average
Auction Date	ROC Price �/MWh	ROC Price �/MWh	Total Number of ROCs	ROC Price p/kWh
24-Oct-06	$44.81	$44.50	54,263	** 4.481 *
20-July-06	$40.62	$40.60	227,909	** 4.062 *
20-Apr-06	$40.65	$40.60	261,201	** 4.065 *
19-Jan-06	$38.42	$37.75	197,930	** 3.842 *
20-Oct-05	$39.16	$35.40	216,177	** 3.916 *
20-July-05	$45.72	$45.50	197,944	** 4.572 *
20-Apr-05	$46.07	$45.00	180,083	** 4.607 *
20-Jan-05	$47.18	$46.90	151,348	** 4.718 *
26-Oct-04	$46.12	$45.90	129,919	** 4.612 *
21-July-04	$52.07	$51.76	176,759	** 5.207 *
20-Apr-04	$49.11	$48.80	166,643	** 4.911 *
20-Jan-04	$47.46	$47.30	96,449	** 4.746 *
21-Oct-03	$45.93	$44.80	123,979	** 4.593 *
16-July-03	$48.21	$47.71	158,512	** 4.821 *
15-Apr-03	$46.76	$46.75	191,897	** 4.676 *
16-Jan-03	$47.46	$45.51	64,337	** 4.746 *
17-Oct-02	$47.12	$47.00	85,404	** 4.712 *
		Total	2,680,754

ECAs

Enhanced Capital Allowances - Energy Technology List

Nov-06

Enhanced Capital Allowances (ECAs) are a tax relief given through the tax system by reducing the taxable profits of the business. The ECA scheme builds on existing statutory provisions, under which businesses may obtain tax relief, in the form of capital allowances, for their investment in plant and machinery. Capital allowances allow the costs of capital assets to be written off against a business's taxable profits. They take the place of depreciation charged in the commercial accounts which is not allowaed for tax. The main rate of allowances for plant and machinery is 25% a year on the reducing balance basis, which spreads the benefit over a number of years (about 95% of the cost is relieved in 8 years). ECAs have been granted in other areas before but this is the first time that they have been introduced for use to support energy efficiency. ECAs enable businesses to claim 100% first-year capital allowances on their investment in designated energy-saving plant and machinery in the year in which the expenditure is incurred. ECAs bring forward relief, so that it can be set against profits of a period earlier than would otherwise be the case.

The benefit to businesses of ECAs is thus a cash flow boost resulting from the reduction of the business's tax bill of the year in which the investment is made.

Capital Allowances can be claimed on capital expenditure incurred on the provision of plant and machinery for use in a business's trade. It is a requirement of the legislation that as a result of incurring the expenditure the machinery or plant belongs to the person making the claim.

Some assets will not qualify for ECAs. These include assets that are buildings or structures as defined by sections 21 to 23 Capital Allowances Act 2001 as these assets do not qualify for plant and machinery capital allowances.

How to Claim for ECAs

Claims for ECAs are made in the same way as other capital allowances on the Corporation Tax Return for companies and the Income Tax Return for individuals and partnerships.

The Inland Revenue's guidance on the ECA scheme can be found at www.inlandrevenue.gov.uk/capital_allowances/eca-guidance.htm.

The Inland Revenue administers claims for ECAs and they have wide-ranging powers to investigate any aspect of the return. If errors are identified, any tax underpaid may be recovered with interest and, in cases of negligent or fraudulent conduct, penalties. Penalties cannot exceed 100% of the tax that would otherwise have gone unpaid.

Claims must be based on the costs incurred. Where you have purchased a qualifying Product that is not already incorporated into a larger item of plant and machinery you must use the price paid for the item as the base of your claim. If you have purchased a qualifying product which is incorporated into a larger piece of equipment, the eligible claim value is provided in the Claim Values section of this site. The remainder of the equipment can attract capital allowances at the normal (rather than the Enhanced) rates.

The words ‘on the provision of machinery or plant’ in the Capital Allowances Act are interpreted narrowly and exclude remote or indirect expenditure. Some common types of cost are detailed below:

Direct transportation and installation costs can be regarded as expenditure on the provision of plant or machinery. These can include, for example, the costs of transport, cranage costs to lift machinery in to place, project management costs, installation, modifications to existing plant and machinery, and commissioning.

Professional fees qualify only if they are directly related to the acquisition and installation of assets that are plant or machinery. Fees incurred on such things as feasibility studies or design work are generally too remote from the acquisition and installation to qualify. The eligibility of such costs is a question of fact based on the particular circumstances of the case.

Costs of alteration to an existing building arising as a direct result of the installation of qualifying plant and machinery may be eligible for ECA.

The technologies that currently appear on the Energy Technology List (as from 26th August 2004) are as follows:

Air-to-air energy recovery

Automatic Monitoring and Targeting

Boilers

Combined heat and power (CHP)

Compact heat exchangers

Compressed air equipment

Heat pumps for space heating

HVAC zone controls

Lighting

Motors

Pipework insulation

Refrigeration equipment

Solar thermal systems

Thermal screens

Variable speed drives

Warm air and radiant heaters

Only energy saving products that meet the scheme's published energy-efficiency saving criteria can qualify for inclusion in the Energy Technology Product List. The Energy Technology Product List provides detailed information on the products from all technology categories (apart from CHP, component AMT, lighting and pipework insulation), that meet those energy-saving criteria.

CHP qualifies as energy-saving plant and machinery if it is certified as "Good Quality CHP" under the quality assurance programme for CHP (CHPQA www.chpqa.com) and has been granted a "certificate of energy efficiency". You can find out how to identify CHP that meets the eligibility criteria and hence spending on which can qualify for enhanced capital allowances, by reading the Eligibility Criteria section on the ECA website.

A certification scheme is also required for component AMT equipment. A complete component based AMT system comprises meter(s), a meter reading system and analytical software. Spending on a system can qualify for ECAs provided the Department for Environment Food and Rural Affairs (DEFRA) have issued a certificate to confirm that it meets the qualifying criteria set out in the Energy Technology Criteria List (Component Based AMT Equipment). A business cannot claim ECAs on its spending on a component based AMT system until the certificate has been issued.

For Lighting and Pipework Insulation technologies, although individual products are not listed, the details of the manufacturers who can supply ECA-eligible products/installations can be found on the Energy Technology Criteria List and in the online Exhibition. Note that not all of the manufacturers products/installations will necessarily meet the eligibility criteria and it is the purchaser's responsibility to check with the manufacturer which of their products meet the criteria and are available to claim an ECA.

ECA are claimed in the same way as other capital allowances on the Corporation Tax Return for companies and the Income Tax Return for individuals and partnerships. Capital Allowances are given in respect of capital expenditure incurred wholly and exclusively on the provision of Plant and Machinery for use in a person's trade. It is a requirement of the Capital Allowances Act that as a result of incurring the expenditure, the Plant and Machinery belongs to the Claimant.

Spreadsheet's Author: EAmato
Last Updated with Excel 97

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