Climate Change Levy (CCL)

Learn more about the Climate Change Levy, an environmental energy tax for businesses

What's the Climate Change Levy?

A man navigating a tablet screen that discusses the Climate Change Levy

Environmental tax on business energy

The Climate Change Levy (CCL) is an environmental tax on commercial energy use.

It was introduced in the UK in April 2001 and was designed to encourage businesses to be more energy efficient and to reduce greenhouse emissions.

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

You can find out more about the CCL on the HM Revenue & Customs website.

How is CCL charged?

Suppliers take payments on behalf of HMRC

CCL is charged by suppliers of taxable commodities, including British Gas. If you’re one of our customers, you’ll see the charge listed as a separate line item on your energy bill. After collecting the money from customers, the suppliers pay it to HM Revenue & Customs.

How much is the CCL?

CCL rates are calculated per kilowatt hour of usage and change over time.

Time period Natural gas Electricity
1st April 2019 to 31st March 2020 0.339p 0.847p
1st April 2018 to 31st March 2019 0.203p 0.583p
1st April 2017 to 31st March 2018 0.198p 0.568p
1st April 2016 to 31st March 2017 0.195p 0.559p
1st April 2015 to 31st March 2016 0.193p 0.544p

We can help you reduce CCL charges

Energy efficiency the key

Being energy efficient can help you cut costs and reduce emissions, boosting both your bottom line and your green credentials. We take energy efficiency seriously in order to:

  • Help reduce energy costs for our customers
  • Minimise the environmental effect of our business activities

Find out more about energy efficiency in the Smarter Working section of our website.

A man types on a computer while drawing on a chart about energy efficiency