The Climate Change Levy
The Climate Change Levy (CCL) is a tax introduced in 2001 on non-domestic energy users in the UK. It is applicable to the consumption of electricity, gas plus other fuels and is intended to incentivise a reduction in energy use. The CCL is charged only on the energy used and not other components of the bill such as the fixed daily standing rate. CCL is charged alongside VAT on your bill with annual increases normally in line with the Retail Prices Index (RPI).
Last month saw the introduction of higher Climate Charges Levy charges on businesses with a significant year on year increase to take into account the abolition of the CRC Energy Efficiency Scheme.
Is this applicable to my organisation?
For ‘low usage’ businesses or non-domestic purposes a reduced rate of VAT applies and CCL is not included. Low usage is defined as:
|Electricity||At or below 33 units per day during the billing period|
|Gas||At or below 145kWh per day during the billing period|
There may be other exclusions such as charitable non-business use.
Find more information on exemptions: https://www.gov.uk/guidance/climate-change-levy-application-rates-and-exemptions#exemptions-from-the-main-rate-of-ccl
How will this affect my bills?
For those eligible, the main rates for financial years for electricity and gas are shown below*:
|From 1st April 2018||From 1st April 2019||From 1st April 2020|
The rate from 1st April 2019 is over a 45% increase for electricity and almost 67% increase on gas compared to the previous year.
How can the Alliance help?
As part of our Premium Membership offer, we can help you understand your bills and opportunities for energy reduction. Get in touch to find out more about our paid-for support services and access free resources, available to all CCCA members in our member’s resource library. Join here https://www.camdencca.org/join/