Climate Change Levy


What's the Climate Change Levy (CCL)?

The Climate Change Levy was introduced in April 2001 in the UK. It’s an environmental tax on commercial electricity and gas use. It is designed to promote energy efficiency and reduction of greenhouse gas emissions in businesses.

CCL is paid for all energy a business uses. It’s paid by all businesses, no matter who your energy supplier is.

What’s included in the Climate Change Levy?

CCL is charged on taxable commodities supplied for lighting, heating and power purposes to business customers including:

  • Natural gas
  • Electricity
  • Petroleum
  • Hydrocarbon gas in a liquid state
  • Coal
  • Lignite
  • Coke
The only businesses who don't pay CCL are charities and non-for-profit organisations who paid the reduced VAT rate, in addition to businesses who have energy use below the minimal limits.

What's not included in the CCL?

CCL isn’t charged on road fuel and other oils which are already subject to excise duty.

What businesses do not pay the CCL?

The types of customers who do not pay the CCL are:

  • Domestic customers
  • Non-for-profit organisations and charities
  • Business customers who meet the minimal use requirements:
    1. Electricity supply below 1,000 kWh per month
    2. Gas supply below 4,397 kWh per month

How much is the CCL and how is it charged?

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

It's charged by suppliers of taxable commodities including British Gas and will be listed as a separate line item on your energy bill. After collecting the money from customers, the energy suppliers will pay it to HM Revenue and Customs.

How can I reduce my business' CCL charges?

Being energy efficient enables us to reduce CCL charges by using less energy, boost your bottom line and green credentials and minimise the environmental effect of our business activities.

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