Climate Change Levy (CCL) Rates Comparison - 1st April 2017 / 1st April 2019

CCL Rates

With the scrapping of the Carbon Reduction Commitment (CRC), the Government has decided to offset the loss in revenue to the Exchequer by increasing the rates of CCL with effect from the 1st April 2019. Below is a table that shows the current rates and the promulgated increases for the coming years:

Taxable CommodityRate from 1st April 2017Rate from 1st April 2018Rate from 1st April 2019
Electricity (£/kWh)  £0.00568  £0.00583 £0.00847
Gas (£/kWh) £0.00198 £0.00203 £0.00339
LPG (£/kg) £0.01272 £0.01304  £0.02175

For further clarity, let’s look at some example calculations to see the effect of these increases on a clients’ energy utility bills:

A hotel has the following monthly electricity and gas consumptions; using the current rates of CCL the charges will be as follows (1st Apr 2017 – 31st Mar 2018):

MonthElectricity Consumption (kWh)Gas Consumption (kWh)CCL Payments (Electricity)CCL Payments (Gas)
 Apr-2017  222,349  749,185  £1,262.94  £1,483.39
May-2017   223,206  696,228  £1,267.81  £1,378.53
Jun-2017  231,470  342,740  £1,314.75  £678.63
Jul-2017  277,963  596,266  £1,578.83  £1,180.61
Aug-2017  241,461  646,292  £1,371.50  £1,279.66
Sep-2017  207,404  662,041  £1,178.05  £1,310.84
Oct-2017  215,727  784,759  £1,225.33  £1,553.82
Nov-2017  222,250  925,662  £1,262.38  £1,832.81
Dec-2017  223,307  597,832  £1,268.38  £1,183.71
Jan-2018  228,556  941,555  £1,298.20  £1,864.28
Feb-2018  228,556  857,180  £1,137.07  £1,697.22
Mar-2018  228,556  862,402  £1,194.07  £1,707.56
Totals   2,704,105  8,662,142  £15,359.32
 £17,151.04

This gives a total CCL liability for the year of £32,510.36

Now let us see the effect on the CCL liability from the 1st April 2019 when there is a significant increase in the rates of CCL (Assuming that the hotels’ utility consumption remains the same):

MonthElectricity Consumption (kWh)Gas Consumption (kWh)CCL Payments (Electricity)CCL Payments (Gas)
 Apr-2019  222,349  749,185  £1,833.30  £2,539.74
May-2019  223,206   696,228   £1,890.56   £2,360.21 
Jun-2019  231,470   342,740   £1,960.55   £1,161.89 
Jul-2019  277,963   596,266   £2,354.35   £2,021.34 
Aug-2019  241,461   646,292   £2,045.17   £2,190.93 
Sep-2019  207,404   662,041   £1,756.71   £2,244.32 
Oct-2019  215,727   784,759   £1,827.21  £2,660.33 
Nov-2019  222,250   925,662   £1,882.46   £3,137.99 
Dec-2019  223,307   597,832   £1,891.41   £2,026.65 
Jan-2020  228,556   941,555   £1,935.87   £3,191.87 
Feb-2020  200,188   857,180   £1,695.59   £2,905.84 
Mar-2020  210,224   862,402   £1,780.60   £2,923.54 
Totals  2,704,105   8,662,142  £22,903.77   £29,364.66 

This gives a total CCL liability for the year of £52,268.43

This is an overall increase in CCL liability of approximately 61%. Considering that energy saving measures take at least 2 years to install; it has never been more important to look at ways of reducing your energy consumption.

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