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.
What is included in the CCL?
CCL is charged on taxable commodities supplier for lighting, heating and power purposes to businesses. 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
What is not included in the CCL?
CCL isn’t charged on road fuel or other oils that are already subject to excise duty.
Certain types of energy use and businesses are exempt from the CCL. These exemptions include:
- Domestic customers
- Non-for-profit organisations and charities
- Business that meet the minimal use requirements:
- Electricity supply below 1,000 kWh per month
- Gas supply below 4,397 kWh per month
How much is the CCL and how is it charged?
CCL rates are calculated per kilowatt hour of usage and change over time.
It’s charged via your energy supplier and will be listed as a separate line item on your energy bill. After collecting money from customers, the energy suppliers will pay it to HM Revenue and Customs.
Find out the latest information on CCL on the government website: Climate Change Levy rates
How can I reduce my business’ CCL charges?
Being energy efficient enables you to reduce CCL charges by using less energy and minimising the environmental impact of your business activities.
Make the most of your energy with Consultiv Utilities
At Consultiv Utilities we can help to identify whether your organisation qualifies for a Climate Change Levy exemption and help to process your exemption certificate for you. Plus, if your business has incorrectly been paying CCL charges some time, we can claim a rebate on your behalf for up to the last 4 years.
