The Climate Change Levy (CCL) is an environmental tax. It applies to businesses and organisations, and is based on their energy consumption. It’s designed to reduce carbon emissions by encouraging energy efficiency. Even businesses using a green energy supplier need to pay the CCL.
If your business is liable, the levy is added to your energy bill automatically by your energy supplier. Your supplier will pass the charge over to HMRC.
The CCL applies if your business is industrial, commercial, agricultural or a public service
Bulb for Business members pay the CCL unless they're:
- registered at a property that’s also a home
- a charity engaged in non-commercial activities
- using less than 33 kWh of electricity per day (1000 kWh per month) or 145 kWh of gas per day (4397 kWh per month) - the charge only applies to usage above these amounts
Businesses pay a reduced rate if they have a Climate Change Agreement to reduce carbon emissions.
How much you'll pay
CCL cost is calculated based on the amount of energy used. It’s listed as a separate line on your monthly statements. The more energy you use, the more CCL you’ll pay. The rate is updated on 1 April every year.
|Fuel type||Rate from 1 April 2020 (pence per kWh)||Rate from 1 April 2021 (pence per kWh)|