The Climate Change Levy

Climate Change Levy is a direct taxation on the consumption of energy in industry, commerce, agriculture and the public sector,  introduced because the UK is signed up to international commitments to reduce carbon dioxide emissions.

All UK businesses and public sector organisations will pay the levy - with the exceptions noted below - via their energy bills at the rates shown below

0.441 p/kWh for electricity

0.154 p/kWh for gas

1.201 p/kilogram for coal

0.985 p/kilogram for LPG

The only exceptions to the rule are those organisations signed up to a CCA or Climate Change Agreement through their Trade Association and I have set out on a separate page details of those Trade Bodies with CCA's (what we call Sector Agreements) in place so if you are unsure whether your Company may be able to take advantage click on the link.  CCA's are great because they entitle you - the eligible Company to up to 80% discount on the CCL and they are great for the environment because they effectively force you to make energy efficiency a priority or you lose your discount.

So What Does It Mean To Your Business If You Pay The Full CCL? By way of an example, if your annual energy costs are £40,000/yr (split £32,000 Electricity and £8,000 Gas) you will have to pay around £4,352 in Climate Change Levy (that is 11% of the total energy bill).   If you spend £200,000 (split £160,000 Electricity and £40,000 Gas) then the rise will be over £25,000 (or 13%). Many Companies just take it on the chin.  You don't have to - simple and low cost energy saving measures will offset the effect the CCL both rapidly and cost effectively.  How do you identify the measures available - simple - organise an energy survey.  We can help - email Stewart for details.