CLIMATE CHANGE LEVY (CCL)
The hidden charge that many organisations don’t know they are exempt from
We have helped clients recoup an incredible £600,000 in Climate Change Levy rebates and relief over the past 12 months.
What is the CCL?
The Climate Change Levy is one of a number of environmental taxes that have been introduced in recent years to help combat the growing climate crisis. The levy forms part of the UK’s Climate Change Programme, a government scheme launched in 2000 to deliver on the agreements made at the 1992 United Nations Earth Summit.
The CCL only targets organisations that profit from their energy use. It focuses on business gas and electricity usage as a tax charged on heating, lighting and powering within commercial settings. However, the CCL is not charged on road fuel and other oils, as these are already subject to their own excise duties.
Should your business be paying the Climate Change Levy?
While the Climate Change Levy is designed to encourage businesses to be smarter and more sustainable with their energy usage, not all organisations are eligible for the tax. In fact, there are several industries and business types that are exempt from the levy.
Unfortunately, however, the CCL is typically applied as standard on bills – which results in many thousands of organisations paying more than they should within their contract. And, at a time when energy prices are already worryingly high, many companies could be significantly reducing their monthly overheads.
Although the scheme has been around for over 20 years, few businesses understand whether they are eligible for relief or even exempt from the tax. Similarly, those organisations that identify an exemption are unaware that they can claim a rebate on tax paid over the past 4 years.
Get in touch with the team at Consultiv Utilities today and we can help you find out if your business is eligible for relief or a rebate from the Climate Change Levy.
CCL comes in two forms
There are two rates for the CCL: the main rate and the Carbon Price Support rate. The rate your organisation pays depends on the industry you work in and the way you generate power.
If you work in the commercial, industrial, agricultural or public services sectors, the Climate Change Levy will be charged at the main rate on gas, electricity and solid fuel, including coal.
Meanwhile, if you own generating stations or operate combined heat and power stations, the Carbon Price Support rate will apply.
Climate Change Levy exemptions
If you are a charitable organisation or a non-profit engaged in non-commercial activities, you could be exempt from the tax altogether.
Similarly, if your organisation works in an energy intensive industry such as the metallurgical and mineralogical industry, it is possible to significantly reduce your CCL contributions by completing a Climate Change Agreement or CCA.
Commercial exemptions:
1. Businesses that use small amounts of energy
- Gas – 4,397kWh per month
- Electricity – 1,000kWh per month
2. Domestic energy users
- Armed forces residential accommodation
- Caravans and caravan parks
- Children’s homes
- Hotels
- Homes for the elderly and disabled
- Hospices
- Houseboats
- Houses, flats or other dwellings
- Monasteries, nunneries and similar religious communities
- School and university residential accommodation for students and pupils
- Self-catering holiday accommodation
- Supplies to community heating schemes
If a building is in use as a hospital, a prison or similar institution, a hotel, inn or similar establishment, supplies made to it are not for domestic use, they are deemed ‘mixed use’.
Make the most of your energy with Consultiv Utilities
At Consultiv UtilitiesWe can help to identify whether your organisation qualifies for a Climate Change Levy exemption and help to process your exemption certificate for you. Not only that but if your business has incorrectly been paying CCL charges some time, we can claim a government rebate on your behalf for up to the last 4 years. This sum can add up to many thousands of pounds.
We can help also help you make sense of your energy contracts and find the best deals for your needs, as well as support you to meet your sustainability goals.
We will work with you every step of the way to ensure that your utilities become cost effective and easy to understand.