ADMINISTRATIN CHARGES

To cover the cost of all the administrative activities of the Master Bakers Climate Change Levy Discount Scheme, NAMB/SAMB has agreed a set of charges that will be applied on a PER SITE basis. The charges include a joining fee and an annual fee.

The joining fee will be invoiced when your Application Form is processed. For most sites this will be in December 2000. To avoid the administrative costs of chasing outstanding fees, the Scheme Administrator will simply not issue an Underlying Agreement until the relevant fee has been paid. The joining fee is non-refundable.

The annual fee will be invoiced when each year’s request for data is sent to each Participant. The first annual fee will be invoiced in October 2001. The annual data return will not be processed until this fee has been received.

Fees have been structured on the basis of small, medium and large bakeries. This has been done to spread the burden of administrative costs fairly between different sizes of site and it reflects the significantly higher level of Climate Change Levy discount that larger sites will obtain. There is also a separate charge for each shop in a bakery ring.

Different fee levels apply to members and non-members of NAMB/SAMB. In the joining fee this is to reflect the significant cost that is been borne by NAMB/SAMB during negotiations with DEFRA. In the annual fee it reflects the on-going costs being borne by the Trade Association.

For bakeries where the majority of output goes to shops that form a "bakery ring", the size banding used in the fees table on the previous page is based upon the number of shops in the ring (including both eligible and non-eligible shops), as follows:

• Large bakery The bakery serves 50 shops or more

• Medium bakery The bakery serves between 10 and 49 shops

• Small bakery The bakery serves between 2 and 9 shops

• Very Small bakery The bakery is dedicated to 1 shop

For wholesale bakeries, the size banding is based on the amount of primary energy (See Information Sheet 3) used each year as follows:

• Large bakery above 10,000 MWh per year

• Medium bakery from 2,500 to 10,000 MWh per year

• Small bakery below 2,500 MWh per year

Table 10.1 Master Bakers CCLA Administration Fee Structure

*Note: Bakery sizes are defined above.

There will be a minimum fee of £65 per Application Form (e.g. this represents a very small bakery and it’s associated shop).

Every effort has been made to set the administrative charges at the lowest possible level. For the majority of sites in the craft baking sector, the charges are a very low proportion of the Levy discount that will be obtained. Examples for large, medium and small sites are:

1. A large wholesale bakery with an energy bill of £150,000 will get a Levy discount of about £18,000 per year. The annual administration fee will be £350 for members, which represents 2% of the annual discount.

2. A medium sized bakery with a ring of 20 shops may have a total energy bill of about £150,000. Assuming all of the shops have bake off and are fully eligible for the discount, the Levy discount will be about £15,000 per year. The annual administration fee will be £450 for members, which represents 3% of the annual discount.

3. A very small bakery with a single attached shop may have an energy bill of £12,000 will get a Levy discount of about £1,400 per year. The annual administration fee will be £65 for members, which represents about 4% of the annual discount.