Products & Services

Energy Efficient Motors

Energy Efficiency
A new tax on energy use in industry, commerce, agriculture and the public sector, the Climate Change Levy, will be introduced in April next year. All UK businesses will pay the levy via energy bills, 0.43p/kWh for electricity, 0.15p/kWh for gas, 1.17p/Kilo for coal and 0.96p/Kilo for LPG. The levy will raise approximately £1 billion in its first year, which will then be recycled by a 0.3 percentage point reduction in employers' National Insurance contributions.

There are some exemptions to the levy including energy products that act as both a fuel and a feedstock, electricity used in some electrolytic processes and natural gas in Northern Ireland for five years.

Discounts of 80% will be available to energy intensive consumers who sign up to energy saving targets agreed by the Government who have been negotiating with energy intensive sectors of industry such as producers of aluminium, steel, chemicals, paper and food and drink. Another initiative to encourage the use of energy saving equipment is a tax incentive which will allow companies to effectively write off 100% of the cost of certain types of equipment, this scheme is known as "Enhanced Capital Allowances". Lighting equipment, boilers and refrigeration are some of the categories that have been chosen to be eligible for Enhanced Capital Allowances. Variable speed drives and energy efficient motors are two of the key types of motion control equipment which will qualify for the allowance.