What is the Climate Change Levy?
The Climate Change Levy (CCL) is an environmental tax introduced in April 2001 as a part of the UK government’s efforts to reduce greenhouse gas emissions and promote energy efficiency. The levy is applied to the energy used by businesses, aiming to encourage them to reduce their energy consumption and adopt more sustainable practices.
Consultiv Utilities help businesses hit their climate targets and save money. Speak with our team today.
What is Climate Change Levy Relief?
Climate Change Levy Relief is a service offered by Consultiv Utilities that allows eligible businesses to pay reduced CCL rates on their energy bills. It is available to organisations that enter into a Climate Change Agreement (CCA), which is a voluntary agreement between a business and the Environment Agency to improve energy efficiency and reduce carbon emissions.
In exchange for meeting agreed energy-saving or carbon-reduction targets, businesses can receive significant discounts on their CCL rates. This discount can typically be up to 90% for electricity and 65% for gas and other fuels.
This relief helps energy-intensive industries lower their operating costs while supporting the UK’s overall climate and sustainability goals.Â
Does the Climate Change Levy Apply to My Business?
You pay the main rates of CCL if your business is in one of the following sectors:
- Retail
- Manufactoring
- Hospitality
- Education
- Agriculture
- The public sectorÂ
You do not pay the main rate of CCL on certain supplies, for example, if you are:Â
- A charity
- In an energy-intensive industry (EII)
- A Transport business
- A MinMet business
- A Business that generates renewable electricity on-site
- A business with an electricity supply below 1,000 kWh per month
- A business with a gas supply below 4,397 kWh per month
What is included in the Climate Change Levy?
The CCL applies to the following energy supplies:
- Natural gas
- Electricity
- Gas
- Liquefied Petroleum Gas (LPG)]
- Hydrocarbon gas in a liquid state
- Coal
- Lignite
- Coke
If you use energy supplies, then you might be eligible for CCL.Â
Climate Change Levy Rates
CCL rates are reviewed every year. The table below shows how the main rates have changed from April 2022 through to the next adjustment in April 2026.
Main Rates
Percentage discount for holders of a climate change agreement
FAQs
What is the Climate Change Levy (CCL)?
The Climate Change Levy is an environmental tax on the energy used by businesses in the UK. It’s designed to encourage companies to use energy more efficiently and reduce their carbon emissions. The levy applies to electricity, gas, and solid fuels used for heating and lighting in commercial and industrial operations.
Who qualifies for the Climate Change Levy exemption?
Businesses that are energy-intensive or part of certain industrial sectors may qualify for CCL Relief by entering into a Climate Change Agreement (CCA) with the Environment Agency. Under this agreement, the business must commit to meeting specific energy efficiency or carbon reduction targets.
How much can my business save with a Climate Change Agreement (CCA)?
Companies that hold a valid CCA can receive a reduction of up to 90% on electricity rates and 65% on gas and other taxable commodities under the levy. These savings can represent a substantial cost reduction for manufacturers, data centres, and other high-energy users.
How can Consultiv Utilities help with CCL Relief?
Consultiv Utilities supports businesses through the entire process of applying for Climate Change Levy Relief. From assessing eligibility and submitting the necessary documentation to managing ongoing compliance and performance reporting, we help ensure that businesses maintain their CCA benefits.
What happens if a business fails to meet its energy targets?
If a business fails to meet its agreed energy or carbon reduction targets under a Climate Change Agreement, it may lose eligibility for the discounted CCL rates. Consultiv Utilities can help businesses stay compliant through regular reviews and performance tracking to avoid this risk.
Where can I learn more about CCL exemptions and agreements?
You can visit our Climate Change Agreement page for more information on eligibility, exemptions, and updates to CCL rates. Alternatively, contact Consultiv Utilities to speak with an energy consultant about your organisation’s specific circumstances.
Why is it important?
Consultiv Utilities can help you get the most out of your business gas and electricity in the long run, by using our expertise to meet your requirements.
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