Reducing the impact of this tax
The Government declares that it is giving
special consideration to the treatment of energy intensive
sectors, such as the Dairy Industry, given their high energy
costs.
The dairy sector, has been permitted
to enter into an arrangement with government so that qualifying
individual companies will be able to enter into legally-binding
agreements to implement energy saving measures which are cost
effective and qualify for an 80% discount from the levy rates
over the life-span of the levy from 2001 to 2010.
In order to ease the administration on
themselves, the government decided to nominate certain trade
associations in energy intensive industries to administer
arrangements on their behalf, subject to periodic review by
DEFRA. Dairy UK has been nominated by DEFRA for this role
for the dairy industry in the United Kingdom.
Companies that process milk can only
enter into a government agreement via Dairy Energy Savings
Limited, a company wholly owned by Dairy UK to operate the
dairy sector negotiated agreement.
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