The Climate Change Levy (CCL)

We take energy efficiency seriously for two very good reasons. To minimise the environmental impact of our business activities and to help reduce energy costs for our customers.

The Climate Change Levy (CCL) is an environmental energy tax which was introduced in the UK in April 2001. It is charged on the business use of energy and is designed to encourage businesses to become more energy efficient and thereby reduce greenhouse gas emissions. By working with you to improve energy efficiency, we can help reduce the impact of the CCL on your bottom line.

What is CCL charged on?

CCL is charged on "taxable commodities" supplied for lighting, heating and power purposes to business customers in the industrial, commercial, agricultural and public service sectors.

"Taxable commodities" include natural gas, electricity, petroleum and hydrocarbon gas in a liquid state, coal, lignite and coke.

CCL is not charged on road fuel and other oils which are already subject to excise duty. It is also not charged on certain other supplies of energy, including supplies to:

  • Domestic customers;
  • Charities when put to a non-business use and
  • Business customers who consume very small quantities of energy


There are some other exemptions and reductions from the levy
Read here for a brief explanation

Who charges CCL and how is it charged?

CCL is charged by suppliers of taxable commodities and is generally shown as a separate line item on energy bills. Suppliers collect the CCL charged to customers and pay this over to HM Revenue & Customs.

How much is the CCL?

The rates of CCL for natural gas and electricity will increase with effect from 1st April 2012 from 0.169p per Kilowatt hour to 0.177p for gas, and from 0.485p per Kilowatt hour to 0.509p for electricity*.

Can I reduce my CCL charges?

Complete an Energy Savers Report and understand the energy performance of your business. Find out how you could cut energy usage and reduce your CCL.

Help from the energy experts

* Some exemptions and exclusions apply.