Climate Change Levy (CCL)
Taking energy efficiency seriously
We take our energy efficiency seriously for two reasons:
1. To help reduce energy costs for our customers.
2. To minimise the environmental effect of our business activities.
Tax on commercial energy use
The Climate Change Levy (CCL) is an environmental tax that was introduced in the UK in April 2001. It’s charged on the business use of energy. It’s designed to encourage businesses to be more energy efficient and to reduce greenhouse emissions.
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 isn't charged on road fuel and other oils which are already subject to excise duty. It's also not charged on certain other supplies of energy, including supplies to:
- Domestic customers.
- Charities when put to a non-business use.
- Business customers who consume very small quantities of energy.
There are some other exemptions and reductions from the levy.
Who charges CCL and how is it charged?
CCL is charged by suppliers of taxable commodities. You’ll see it as a separate line item on your British Gas Business energy bills. Suppliers collect the CCL charged to customers and pay it to HM Revenue & Customs.
How much is the CCL?
The rates of CCL for natural gas and electricity are shown in the table below.
|1 April 2016 to 31 March 2017||0.195p||0.559p
|1 April 2015 to 31 March 2016||0.193p||0.544p|
All rates shown per kilowatt hour.
Can I reduce my CCL charges?
You can lower your CCL charges by using less energy. Find out more about how you could cut energy wastage in your business and lower your CCL.
*Some exemptions and exclusions apply.
At a glance
The CCL is an environmental energy tax for businesses.
How does it affect me?
Being energy efficient can help you cut costs, as well as reducing emissions.
How can British Gas help?
We can work with you to lower your environmental impact and cut costs.
Where can I find out more?
You can find out more about the CCL on the HM Revenue & Customs website.