Responding to the impact of global warming, the UK government introduced a number of environmental taxes and relief schemes encouraging businesses to operate in a more environmentally-friendly manner.
One of these measures was the Climate Change Levy (CCL), an environmental tax first introduced in April 2001. You can find out more about the CCL below.
The Climate Change Levy is an environmental tax charged on the energy used by businesses. It’s designed to encourage businesses to be more energy efficient in how they operate, helping to reduce their overall greenhouse emissions.
The CCL applies to businesses in the industrial, public services, commercial and agricultural sectors, and is charged on ‘taxable commodities’ for heating, lighting and power purposes.
CCL is paid at either the main rate or carbon price support (CPS) rate. We’ve highlighted the difference between main rates and CPS rates below.
Any business in the sectors listed above will be charged CCL at the main rate on electricity, gas and solid fuel (e.g. coal, coke, lignite or petroleum coke) use. The CCL main rates are listed on your business gas or electricity bill.
Businesses exempt from paying main CCL rates include charities engaged in non-commercial activities, and businesses that consume energy below the de minimis limit.
Lower CPS rates of CCL encourage businesses to generate their own electricity using low-carbon technologies. Businesses that generate their own electricity may be eligible to pay the reduced CPS rates on CCL.
Business energy supplier are responsible for charging the appropriate CCL, as they supply the taxable commodities. Once the energy supplier has collected the CCL charge, it is passed on to HM Revenue & Customs. If you’re a Gazprom Energy business customer, the CCL rate and charge will be displayed as separate items on your monthly gas or electricity invoice.
For the latest CCL rates per kilowatt hour on natural gas and electricity, please refer to the table below.
1 April 2016 to 31 March 2017
1st April 2017 to 31st March 2018
1st April 2018 to 31st March 2019
1st April 2019 to 31st March 2020
To pay a reduced main rate on CCL charges, energy intensive businesses must enter into a climate change agreement (CCA) with the Environment Agency. A CCA is a voluntary agreement to reduce energy use and CO2 emissions.
Businesses which agree to be bound by a CCA will receive a reduction of 90% in the CCL rate paid on electricity bills, and a 65% reduction on all other fuels. You can check if your business is eligible to sign up to a CCA, here.
For more information on the Climate Change Levy (CCL), including how to find it on your itemised business energy bill, please call the Gazprom Energy customer service team on 0845 230 0011.