Changes to the Climate Change Levy (CCL)
The CCL was introduced in 2001 to improve industrial and commercial energy efficiency and so reduce greenhouse gas emissions. It is a UK-wide tax on the supply of energy to businesses and bodies in the public sector, with separate rates for electricity, gas, solid fuels and liquefied gases depending on their energy content. Renewable electricity supplied to businesses under renewably sourced energy contracts has been exempt from the CCL since its introduction.
The current change means that businesses who are party to renewable sourced energy contracts will now be responsible for the paying of the CCL.
When did it change?
On 8th July 2015, the Government announced its 2015 Summer Budget in which the CCL exemption for renewably sourced energy supplied to businesses was removed.
When does the change take effect?
1st August 2015. Renewable premium will be charged at the prevailing CCL rate, currently 0.554 pence per kWh (excluding VAT). This will only continue until the end of the transitional period, the length of which will be determined by the Government.
What happens when the transision period ends?
Once the transition period is over the renewable premium will be removed and customers will be required to pay the full published CCL charge.
Who is affected?
Contracts that include renewable sourced energy.