Preparing for Red Diesel Rule Changes

How are you preparing for the end of tax rebated fuel for ‘off-road’ vehicles?

From Friday 1st April 2022, rebated fuels such as red diesel will no longer be available for use in the construction industry. The announcement was made by the UK Government within their 2020 budget.

Red diesel accounts for around 15% of all diesel used within the UK. It’s thought that its’ use is responsible for the production of nearly 14million tonnes of carbon dioxide (CO2) annually.

In 2018, in London alone, it’s estimated that the red diesel used within the construction and building infrastructure building sectors caused 7% of Nitrogen Oxide (NOx) emissions. Additionally, it’s thought to be the cause of 8% of all PM10 emissions, a type of particulate matter that has been associated with the worsening of respiratory diseases to the point of hospitalization.

What can you do to reduce fuel usage on your construction sites?

To help construction companies like yours reduce their fuel usage, costs, and carbon emissions, we developed Eco Lync.

Eco Lync manages the demand and supply of energy to reduce peaks. This enables smaller, more efficient generators to be used and, in some instances, complete transition to a mains supply. On average, sites can reduce their generator size by 30% when using Eco Lync.

So, what are the cost implications?

Well, as your energy consumption is reduced, so do your costs. Our clients have been able to save £110 per welfare cabin each month on the sites that have Eco Lync in place, and that was before the removal of the red diesel fuel subsidy.

Currently, the rebate on red diesel can be up to 46.81p per litre. On an existing site where Eco Lync is in place, our customer experienced cost savings of £439 per week due to reduced fuel consumption.

Following the removal of the red diesel fuel subsidy, the same site will experience cost savings of £722 per week – the equivalent of £37,000 if the site were to be operational for a full year.

If you’re concerned about the impact of the red diesel subsidy removal on your business and would like a consultation on how Eco Lync could help, contact the Invisible Systems team today.