CCL - What You Need to Know

Climate Change Levy

The Climate Change Levy (CCL) is a government tax, applied to energy use, and is designed to encourage businesses to be more energy efficient, therefore reducing their carbon emissions and their impact on the environment.

The Climate Change Levy is applied at the time of supply and is charged only on the energy used. CCL applies to electricity, gas, liquid petroleum and solid fuels. However, exemptions for supplies from certain renewable sources and Combined Heat and Power (CHP) may be applicable.

Who does CCL apply to?

The Climate Change Levy applies to all businesses or non-domestic consumers of energy from fossil fuels.

CCL applies to businesses in the following sectors:

  • Industry
  • Commercial
  • Agriculture
  • Public Services

Businesses with very low energy consumption are considered to be exempt from the levy and are treated as domestic consumers. Most charities and non-profit organisations also qualify for automatic exemption from CCL. Other exemptions through voluntary schemes are also available.

How is the CCL charged?

The Climate Change Levy is calculated based on the amount of energy being supplied and is charged by the supplier of the taxable commodity. Suppliers then pay the collected tax to HM Revenue and Customs.

CCL is often shown as a separate line item on energy bills (usually above the VAT line) and is also VAT chargeable. It is charged at a flat rate on every kilowatt-hour (kWh) of energy used, which increases with inflation.

CCL Exemptions

A number of exemptions can apply to the Climate Change Levy. Businesses in a range of sectors may be eligible for a discount by signing up to industry-wide Climate Change Agreements which set ambitious targets for bettering energy efficiency.

By choosing to use energy from renewable sources, or low CO2 sources such as solar, wind or Combined Heat and Power (CHP), businesses can also achieve exemption from the CCL.

CCL Managemnet Packages

2EA® provide three packages to help you manage your CCL exemption as well as helping to obtain and maintain a valid CHPQA certificate. Quotations for individual packages are available upon request.

If you require any further information about CCL, CHPQA or any of the other services 2EA® provide, please feel free to get in touch.

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