The CCLAs have been designed to encourage firms to participate and receive the discount. By joining an Agreement you get two benefits:

• The 80% Levy discount, AND
• The savings from improved energy efficiency. The energy efficiency targets should not impose any net additional costs, as they are set at a level that should be cost effective for the majority of participants.

Against these benefits, there are no downside risks and only a small annual administration cost (see Information Sheet 10). The Underlying Agreements between companies and DEFRA and Umbrella Agreement between NAMB/SAMB and DEFRA are voluntary in nature. This means they do not give rise to normal contractual legal obligations. If you wish to withdraw from the Agreement, you will incur no penalty other than forfeiting the future value of the Levy discount.

If you join the Master Bakers scheme at the start, you will automatically receive the Levy discount from April 2001 until March 2003. You will receive this discount under all circumstances, irrespective of your performance measured against the first milestone target in 2003. It is not repayable. If you fail to meet the first milestone target, you will lose your Levy discount until the next milestone date (see Section 9).

In the vast majority of cases, the Levy discount will far outweigh the cost of participation. In addition to the Levy discount you will accrue cost effective energy efficiency savings. Also of importance, you will be helping mitigate the impact of global warming – the environmental image of your company should benefit from this. We encourage all companies to consider the benefits of the Master Bakers Scheme very carefully. Information Sheet 10 provides sample calculations of costs and benefits for different sized sites.