CCL
Energy Documents - CCL
CCL
- Climate Change Levy
The Climate Change Levy (CCL) is a tax which is designed to encourage businesses to reduce their energy consumption or switch to energy from renewable sources. Here is a quick guide to how it works and how to avoid it using renewable energy.
What is the CCL?
The CCL is a tax on electricity, gas, and solid fuels such as coal, lignite, coke and petroleum coke. It does not apply to oil.
The levy will be included on your energy bill, and may be itemized.
Who pays the levy?
If your business is in the following sectors you will pay the levy:
- Industry
- Commercial
- Agriculture
- Public
- Services
Businesses with low energy consumption are exempt from the levy and are treated as domestic consumers. Energy used by a charity for non-business purposes is excluded from the CCL. Educational institutions such as schools, colleges and universities are subject to the CCL.
At the time of writing, a piped gas supply of not more than 4397kWh per month will be treated as domestic and excluded from the levy.
An electricity supply not exceeding 1000kWh per month will be treated as domestic and excluded from the levy.
Other than small consumers, energy is normally exempt from the CCL if:
- it won’t be used in the UK
- it’s supplied to or from certain combined heat and power schemes
- it’s electricity that’s generated from renewable sources
- it’s used to produce electricity
- it won’t be used as fuel
For more information about CCL see our documents below.
