AS OF 1 APRIL 2022, RED DIESEL WILL NO LONGER BE AVAILABLE AT A REBATED RATE FOR MANY COMMERCIAL APPLICATIONS. THIS COVERS THE MAJORITY OF USERS IN THE CONSTRUCTION INDUSTRY.
GOVERNMENT GUIDELINES SPECIFY WHICH USES OF RED DIESEL WILL STILL BE PERMITTED
WHY IS THE GOVERNMENT BANNING RED DIESEL AND WHAT WILL THIS MEAN FOR BUSINESSES WHO RELY ON IT?
From 1st April 2022, many sectors will lose their entitlement to use ‘red’ diesel and rebated biodiesel across a variety of applications – and construction is one of the industries that is most affected.
Back in 2019, the UK government set out its plans to cease its contributions to climate change by becoming carbon neutral by 2050. These plans were, at the time, some of the most ambitious timelines set by any nation around the world.
In the months since, the government has set into motion a number of policies designed to pave the way to a carbon-neutral future.
For industries that rely on red diesel and white diesel, the changes to long-standing tax and duty rates have been designed to incentivise users to develop and adopt cleaner alternative fuels.
HERE’S THE LOWDOWN ON THE KEY QUESTIONS PROFESSIONALS NEED TO CONSIDER IN ORDER TO ENSURE A SMOOTH AND SUCCESSFUL ENERGY MIX TRANSITION.
WHAT’S CHANGING AND WHY?
Red diesel is just ordinary ‘white’ diesel with a dye in it – but it is taxed at a much lower rate than white diesel. This rebated red fuel was introduced as a concession for certain industrial users in off-highway applications because fuel duty was mainly intended to be a tax on road vehicles.
Changes to this regime were announced by the UK government during Budget 2020 as part of the drive to achieve net-zero carbon emissions by 2050.
After the April 2022 deadline most current users of red diesel will have to switch to white diesel instead. Taxing most users at the full rate is intended to reflect the impact of the emissions they produce, while also promoting the use of cleaner alternatives.
This is great news for the environment but many in the construction industry have been left confused about whether they will be affected by the changes, and how they should demonstrate compliance with the new rules.
WHAT IS RED DIESEL?
Red diesel, also commonly called gas oil or cherry red, is regular diesel that’s exclusively used in off-road machinery and engines and is primarily used in the agricultural, marine and construction sectors.
Red diesel is different from white or “road” diesel in two ways: its colour, and the rate at which it’s taxed. Chemically, the two fuels are identical, and release identical levels of greenhouse gasses when burned.
Its colour is changed through the use of a red dye that’s used to differentiate it from unrebated fuel.
The dye doesn’t change the properties of the fuel in any noticeable way, but does coat the inner workings of machinery which allows law enforcement agencies to track the illegal use of the fuel.
From an environmental standpoint, this creates a range of issues, not least that red diesel users are paying less than single car owners for the harmful emissions they produce. After all, 1 litre of diesel releases the same emissions regardless of whether it is used on a road or off it.
In order to encourage users to switch away from this carbon-heavy fuel, the government intends to end its 10-year freeze on red diesel fuel duty.
WHICH USERS ARE AFFECTED?
The government has published guidelines that specify who can still use red diesel and in which applications. One of the biggest changes for construction industry users is that heavy plant and equipment of all kinds will no longer be able to run on red diesel when used for construction purposes.
This includes all non-road mobile machinery (NRMM), including excavators, dumpers and cranes.
The construction industry will also lose permission to use red diesel for commercial heating and power generation, for example when using mobile generators on construction sites.
Certain industries that also use gas oil heavily, such as rail, agriculture, commercial fishing fleets and non-commercial heating or power generation uses, will be exempt from the April 2022 changes.
It’s worth noting that red diesel permissions apply only to the way in which equipment is used, not to the type of equipment itself. So, for example, NRMM that can be used for both agricultural purposes and construction purposes will still be able to run on red diesel, but only in an agricultural context.
WHAT OTHER INDUSTRIES ARE AFFECTED?
Other industries and applications that will no longer be able to rely on red diesel include:
• leisure
• mining and quarrying
• ports
• manufacturing
• airport operations
• oil and gas extraction
• waste management
• commercial heating
WHY IS RED DIESEL USE BANNED FOR SOME INDUSTRIES AND NOT OTHERS?
The decision to ban certain industries from using red diesel isn’t an arbitrary one; it’s a move that’s backed up by some startling statistics.
Red diesel is responsible for 14 million tonnes of CO2 released every year The construction and infrastructure sectors alone were responsible for 7% of NOx emissions and 8% of PM10 emissions in London in 2018. Red diesel’s impact on the environment will be reduced as its widespread use is restricted, whilst the additional duty paid by sectors who move to white diesel will be reinvested into green initiatives. Businesses will also be more motivated to move to more environmentally-friendly fuels, such as HVO fuel.
ALTERNATIVE FUELS
The red diesel rule changes are likely to be followed with more regulatory measures to drive UK industry towards a cleaner future. Many users (including us here at EMS) are already exploring the growing variety of cleaner-burning alternatives to diesel that are already on the market.
There are clean diesel alternatives available on the UK market, such as HVO fuel, which eliminate the challenges faced by first generation biofuels whilst providing a drastically reduced emissions profile.
If the government was to treat greener fuels such as HVO based on their emissions, the UK could drastically reduce its emissions in the short term and more comfortably reach its carbon neutral goals.
Some well-known alternative fuels include bio-diesel, bio-alcohol (methanol, ethanol, butane), refuse-derived fuel, chemically stored electricity (batteries and fuel cells), hydrogen, non-fossil methane, non-fossil natural gas, vegetable oil, propane and other biomass sources.
EMS Waste Services are thrilled to announce the purchase of Masters Skips based at St Austell. Cornwall.
This is an especially exciting expansion and partnership as Masters Skips is the first depot based outside of Devon for EMS.
Masters Skips has been supplying Skip and Roro hire to south east and central Cornwall for over 20 years and have built an excellent reputation along the way.
We look forward to continuing this great service and building more working relationships with the residents and businesses of Cornwall.
RECYCLING THROUGHOUT THE WHOLE OF DEVON – And now cornwall!
EMS Waste Services Ltd is one of the top waste management services with head office based in Exeter, Devon.
We have skips suitable for every purpose, whether you need a waste recycling service or asbestos collection and disposal, we work diligently to ensure that our services meet and exceed your every expectation.
With yards in Exeter, Paignton and Plymouth the acquisition of Masters in St Austell means we can continue the great service they’ve been providing in Cornwall.
We can book a permit on your behalf to ensure that your skip can be placed on the road without any worry at all.
With over two decades of experience and a track record for success, our unwavering services are continually expanding to ensure that we recycle every kind of waste possible.
Quality service you can rely on
We pride ourselves on our customer service, which we feel is reflected in our ever-increasing portfolio of returning customers. We understand the importance of punctuality, particularly for commercial clients, and we will always be there to deliver or collect your skip on time.
Masters Skips Ltd provides a complete skip hire, waste transfer and recycling centre in St Austell. Established over 20 years ago, we deliver, collect and exchange skips for our customers in south east and central Cornwall.
From small domestic customers to large construction companies, we have a range of maxi, midi and mini skips to meet your requirements.
Why choose us?
Prompt, reliable delivery and collection
Well-established with an excellent reputation in and around St Austell
Flexible hire contracts
A green philosophy – anything that can be recycled will be
Licensed waste transfer station
We believe firmly in waste recycling where possible, and are committed to minimising the amount of waste sent to landfill.
All glass, wood and plastic waste is recycled at our licensed waste transfer station and customers can also visit the station to drop off rubbish or recycling.
Prompt delivery and collection in Cornwall
Our skips are delivered, collected and exchanged promptly – either on the same day or the following day. Rather than charging per day for skip hire, we operate on a flexible two-week hire basis. If the skip is still needed at the end of the two weeks, we can then extend your skip hire contract.
Sometimes a council permit may be required in order to put a skip in a public area. If this is the case, we will help fill out all the necessary paperwork and organise a site inspection on your behalf – all you have to do is pay for the cost of the permit.
So if you’d like some more info on our services just give us a call. We’re always happy to help.
WE JUST WANTED TO WISH ALL OUR CUSTOMERS A VERY MERRY CHRISTMAS AND A SAFE, HAPPY AND HEALTHY NEW YEAR.
Well as we approach the end of what can only be described as another bizarre year we though now would be a good time to reflect on the positives from 2021.
We’ve been fortunate enough to continue business as usual, in fact we’ve been busier than ever! We’ve had many changes within the business. Our inert recycling facility has been extended, Volvo have been recognised as New Truck Dealer of the Year, we’ve expanded with more commercial property developments, the farm is thriving and lots of new drivers joined our EMS team and we are proud to be actively encouraging the HGV route for the girls. All in all an absolute corker of a year!
With recent announcements the future is still looking uncertain as we go into 2022 but we wanted to take this opportunity to say a huge thank you for all the support and well wishes we have received. We couldn’t have done it without the support of you all and we’re looking forward to another busy and rewarding year next year.
Here at Stuarts we pride ourselves on our high levels of customer service and the fact that we’ve been able to continue working means we’ve been able to uphold that service.
We will be closing on Christmas Eve at Midday and business will resume as usual on the 4th January 2021.
We hope you’re all surrounded by your friends and family and that you have the best Christmas ever!
Here’s hoping for an amazing 2022 for everyone and we look forward to working with you again and really appreciate and value the ongoing support you have shown us.
On behalf of the whole Stuarts team, we hope your festive period is filled with happiness and fun, and we wish you all a very healthy and prosperous New Year!
Not only has it been another record breaking month for sales they’ve also been honoured as winners of the 2021 Volvo New Truck Dealer of the Year Award!!
The honour is presented to the Volvo Trucks dealer which has demonstrated the highest level of performance, coupled with outstanding customer service in all areas. And thats US!!!!!!!
The success is down to the hard work and commitment of every member of staff at Stuarts Truck and Bus. We are proud of the performance levels we have achieved and are looking forward to building on those results as we head into 2022.
We’re fortunate enough to have some amazing customers and we work with some huge local companies as well as the smaller essential ones. A thank you is also owed to everyone who continue to support the business both in sales and servicing and maintainance.
A bit of History
The family business started transporting cattle in 1946, when Mr Alf Stuart bought a second hand Dodge.
We then expanded with Roy and Ross joining the business after leaving school. In 1968 they bought a new Volvo F88, one of the first in the country. They used this F88 to pull the first double deck articulated cattle transporter in Great Britain, which was designed by the Stuarts.
In 1977 we expanded again this time becoming Stuart’s Commercials ‘the official Volvo Truck Dealer for Devon’. The business flourished under the guidance of Ross Stuart.
In 1990 Roy’s son Troy joined the partnership. Later the workshop was extended by another five bays and more personnel were employed. In 2004 Stuart’s were given the opportunity to take over the Volvo Dealerships at Saltash and Redruth in Cornwall.
This done, they went about building a new workshop in Plymouth to relocate the Saltash depot, and carried out improvements at the Redruth depot.
Today Stuart’s Truck and Bus cover the South West peninsula from Bridgwater and Bridport through to Land’s End.
We’re proud to fly the Volvo flag in the Southwest
Volvo Trucks provides complete transport solutions for professional and demanding customers, offering a full range of medium to heavy duty trucks. Customer support is secured via a global network of dealers with 2,300 service points in more than 130 countries. Volvo trucks are assembled in 13 countries across the globe.
In 2020 approximately 94,000 Volvo trucks were delivered worldwide. Volvo Trucks is part of Volvo Group, one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. Volvo Trucks´ work is based on the core values of quality, safety and environmental care.
YOU MAY HAVE HEARD THAT THE PRICE OF SCRAP METAL HAS RISEN DRAMATICALLY THIS YEAR. EVER WONDERED WHY?
WHY ARE SCRAP METAL PRICES SO HIGH?
Well as we all know the Coronavirus pandemic forced ports to close, slowing down international exports. Producers of nonessential goods like scrap metal immediately felt the hit. The pandemic also halted the production of materials and processes necessary to generate scrap material, such as semiconductors and automotive supply chains
The outlook for 2021 has improved significantly as scrap market conditions, driven in part by constrained supply chains and rising prices, have seen a dramatic turnaround.
HOW ARE SCRAP METAL PRICES DETERMINED?
Understanding the processes involved when it comes to marketing your scrap metal is very crucial. The first important factor to put into consideration is transportation. Although if the scrap metal is a small volume around the house then you may not have problem with transportation; but if you own a firm or business that is into frequent production of scrap mental in large quantity, then the options for transporting the scraps need to be considered.
There are two best options which are: you can have the scrap yard collect it and as well sell the scrap on your behalf or you may contract a scrap haulage company. The most cost-effective and simplest is to deal directly with the scrap yard instead of reaching out to third-party haulage company to collect it for you. This is where we come in!
This is a factor that guarantees making money with selling scrap – selecting the right metals to search for. Obviously precious metals like silver and gold command the highest prices but Copper and brass are common metals that are also selling at high prices.
Another factor that needs to be considered is where to sell the scrap metal. Scrap yards have similar price tags and they accept most metals. The best option for a lot of people will be to visit the closest scrap yard or larger recycling facility.
UK SCRAP METAL PRICES BY CITY
Did you know that Scrap Metal prices in the UK change between cities as they are dependent on local demand and supply. It’s expensive to transport large scale quantities of metal, and so your local market is usually your best bet to get the best valuation for your metal.
WHO’S BUYING YOUR SCRAP METAL?
Mainly dealers, who are required to be licensed and registered in order to trade scrap metal. Search the register of scrap metal dealers to be certain you are trading with a legal entity – or ask for their licence number, as dealers tend to be mobile and their addresses can be unreliable.
Dealers in your local area will determine the price of scrap metal you will receive, and in the UK this price will be calculated as a £ per kg in most cases, except where catalytic converters are involved or in some other unique scrap metal cases.
They will determine their daily prices on a multitude of factors: a. Local Demand and Supply b. Market Trading Prices for the Metals c. If they have treatment facilities for the metal d. Specialisation e. Their own judgement
LET’S BREAK DOWN THESE FACTORS AFFECTING SCRAP METAL PRICES HERE:
A. LOCAL DEMAND AND SUPPLY Market forces will affect the prices of scrap metals on a local basis (by UK city or nationally). This might be impacted by seasonality, export/import tariffs. For example, there is likely to be a higher demand for local scrap metal due to increased import costs caused by Brexit. However, Sterling has weakened against the Dollar and the Euro, which has negatively impacted export prices
B. MARKET TRADING PRICES FOR METALS Commodities trading includes the trading of metals which are closely tied to commons crap metal sources. The LME is the international hub for industrial metal trading and you can check the daily metal price updates. This is a great way to understand the specific changes in scrap metal prices in the UK and globally
C. TREATMENT FACILITIES FOR THE SCRAP METALS Some cities have a higher proportion of dealers with treatment facilities in-house. This means reduced travel of scrap metal, which drives down costs and increases prices. Treatment facilities include sorting, crushing, cutting, shearing and baling
D. SPECIALISATION Different scrap metal dealers focus on different scrap metal materials. One dealer might concentrate on aluminium as they have buyers in Europe with a specific need, whilst another might only purchase aluminium cans. The more your scrap metal matches their specialisation, the higher the price you will get for your scrap metal in the UK!
E. THEIR OWN JUDGEMENT Every scrap metal dealer applies their own judgement as to where they believe scrap metal prices in the UK, and globally, will head.
Whatever you’ve got hanging around and regardless how much, we’re the people to call. Our prices are extremely competitive and our service second to none.
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