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.

CCL is paid on both gas and electricity bills and will always be a separate line on each invoice. We’ve highlighted the current rates below.

Taxable commodity Rate from 1 April 2018 Rate from 1 April 2019 Rate from 1 April 2020 Rate from 1 April 2021
Electricity (£ per kilowatt hour (KWh)) 0.00583 0.00847 0.00811 0.00775
Gas (£ per KWh) 0.00203 0.00339 0.00406 0.00465
LPG (£ per kilogram (kg)) 0.01304 0.02175 0.02175 0.02175
Any other taxable commodity (£ per kg) 0.01591 0.02653 0.03174 0.03640

With CCL rates rising over the coming years, it is worth looking into a potential exemption in CCL (this can be in part or in full), and is based on the type of business and industry you are in, where your power comes from and what processes you have at site.

Green energy