Received a CCA Audit notification email? You need to take action

03/08/26

If your business has recently received an early notification email about a Climate Change Agreement (CCA) audit, you are not alone. Across the UK, many organisations from a number of sectors are being notified that they have been selected for an eligibility audit by the Environment Agency. While this might feel daunting at first, the key thing to remember is that this is a chance to prepare rather than a reason to panic.

Climate Change Agreement scheme – background

To hold a CCA, an organisation must operate in a sector which carries out an eligible process and is required to submit an application to the relevant trade association to evidence this.  Organisations who are accepted into the scheme must agree to energy reduction targets, in return for receiving a discount on a levy paid by all businesses via their energy bills (Climate Change Levy – CCL). The impact of the CCA can be considerable, with many businesses obtaining a rebate of up to 92%, in return for a commitment to reduce energy consumption.  Annual data submissions are also a requirement of the CCA Scheme to monitor organisation performance against the agreed targets.

What does an eligibility audit mean?

The audit requires your business to demonstrate that it still meets the eligibility requirements of the CCA scheme.

You will typically be given a few weeks’ notice before the audit formally begins. This time is crucial to ensure your documentation is accurate, complete, and aligned with current requirements.

What a CCA eligibility audit entails

Organisations selected for an eligibility audit will be asked to submit various technical information, demonstrating that they still meet the CCA eligibility requirements.  These include:  

• Schematic diagrams and detailed descriptions, outlining onsite processes, energy usage and clarity on where eligibility is met.
• Evidence that energy usage through these eligible activities meets the minimum threshold if full CCL Relief is being claimed (70%).
• Site plans detailing where the production and non-production operations take place at the facility and the energy usage consumed in each area.

How IEC can support your organisation

IEC has significant experience in managing the CCA Scheme on behalf of clients and supporting them through any audit process.  Eligibility audits can be time-consuming, but organisations may also not possess the technical knowledge required to collate and generate the requested information. 

As the CCA scheme began 25 years ago, the application processes and documentation requirements have also changed over the years.  Subsequently for some organisations, records may be incomplete, outdated, or difficult to locate. Key staff who managed the original application may have moved on. As a result, all businesses can find themselves scrambling to pull everything together at short notice.  We can work with your organisation to collate the required documentation and where there are gaps in evidence, prepare these on your behalf. 

It is important not to ignore the audit as enforcement measures could be invoked by the Environment Agency.  If auditors find that eligibility criteria have not been correctly met, there may be financial consequences, including repayments or penalties.

We can work with your organisation to collate the required documentation and where there are gaps in evidence, prepare these on your behalf to ensure you meet your compliance requirements.

Get in touch with our team today and find out how we can help you.