CCL – Energy taxes on the rise
When you pay your energy bills, hopefully you’re aware that your business is paying a tax to the government called the Climate Change Levy.
Large, non-energy-intensive organisations currently have to purchase allowances for the amount of carbon dioxide (CO2) they are responsible for, under the CRC Energy Efficiency Scheme (the Carbon Reduction Commitment). The CRC has been seen as complicated & a burden on business, in that they have to forecast their energy use & financial plans accordingly. With the CRC ending next year, the government needs to somehow recoup this lost revenue. The increase in the CCL Climate Change Levy simply transfers the revenue collection to the energy bill, rather than a separate scheme.
It is important that you are aware of this increased levy & how it will affect your energy bills. Many businesses just don’t think much about the cost of electricity & gas – they simply pass the bills on to the finance department to pay.
From April 2019, the rate of the CCL will increase by 45% for electricity & 67% for gas. Don’t worry, this isn’t your total energy costs, just the rate of the levy which in itself is only a small percentage of total cost. However, as the supermarket say, every little helps… so it is wise to be aware of this increased cost. Every unit of energy you save, you’ll reduce your tax burden too!
Rates of CCL
| Taxable commodity |
Rate from |
Rate from |
% increase |
| Electricity (£ per kWh) |
0.00583 |
0.00847 |
45% |
| Natural gas (£ per kWh) |
0.00203 |
0.00339 |
67% |
| LPG (£ per kg) |
0.01304 |
0.02175 |
67% |
| Any other taxable commodity (£ per kg) |
0.01591 |
0.02653 |
67% |
Larger users of energy are able to apply for a discount of the CCL, under specific Climate Change Agreements (CCA), sometimes organised through a trade association. To receive the discount, they must commit to achieving energy reductions. Discounts on the CCL of 93% for electricity & 78% for gas apply.
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