What is CCL?
Climate Change Levy (CCL) is an environmental government tax charged on energy used by non-domestic consumers. It is designed to encourage businesses to be more energy efficient and reduce their greenhouse gas emissions. Some businesses are exempt from paying this tax.
Why has it increased?
CCL has increased steadily year on year, however with the Carbon Reduction Commitment (CRC) scrapped at the end of the 2018/19 compliance year, the CCL becomes the only carbon tax on energy bills and the government needs to recover the lost revenue elsewhere. We have seen considerable increases this April and are expecting even higher increases to be announced for April 2020.
| Taxable Commodity | Rates from 1 April 2016 | Rates from 1 April 2017 | Rates from 1 April 2018 | Rates from 1 April 2019 |
| Electricity (£/kWh) | 0.00559 | 0.00568 | 0.00583 | 0.00847 |
| Natural Gas (£/kWh) | 0.00195 | 0.00198 | 0.00203 | 0.00339 |
| LPG (£/kg) | 0.01251 | 0.01272 | 0.01304 | 0.02175 |
| Other taxable Commodities (£/kg) | 0.01526 | 0.01551 | 0.01591 | 0.02653 |
Do I have to pay it?
CCL applies to all businesses, except for charities with non-commercial activities and some businesses with residential use (for example care homes). Businesses with monthly deminimis usage of 1000 kWh (electricity) and/or 4397 kWh (gas) are also exempt.
Some industries are eligible to pay discounted rates, if they sign up into a Climate Change Agreement (CCA) through their trade body/association. More information about CCAs can be found here.
Can I do anything to reduce my cost?
CCL rates are billed against your consumption and therefore the only way to reduce your cost would be to reduce your consumption. This could be achieved through behavioural changes (for example not leaving unnecessary equipment running over night) or energy saving initiatives, for example installing LED lighting or more efficient appliances/equipment.