Update on Climate Change Levy (CCL) changes

What is the Climate Change Levy?

The Climate Change Levy (CCL) is a rate charged on energy supplied to business users, and is applied to electricity, gas, LPG or any other taxable commodity. The CCL has been increased following the closure of the Carbon Reduction Commitment Energy Efficiency Scheme (CRC).

Who do the CCL charges apply to?

The CCL charges apply to businesses which operate in the industrial, commercial, agricultural and public services sectors.  There are some organisation which are exempt from the CCL, for further information on this, please refer to the HMRC website.

What are the changes?

The following table shows the changes to the CCL rates:

Taxable Commodity

Rate from 1 April 2018

Rate from 1 April 2019

Electricity (£ per kWh)

0.00583

0.00847

Natural Gas (£ per kWh)

0.00203

0.00339
LPG (£ per kg) 0.01304

0.02175

Any other taxable commodity
(£ per kg)
0.01591

0.02653

 

These new rates from 1st April 2019 mean a significant increase in the levy: 45% for electricity and 67% for gas, LPG and other taxable commodities.

What does this mean for my business?

The increase in the CCL will likely result in an increase in overall costs on energy bills. The impact will depend on whether the business was previously a participant in the CRC scheme, or if the business qualifies for exemption or reduced rates.

When did these changes take effect?

The changes to the CCL came into effect on the 1st April 2019. The rates are typically reviewed on an annual basis.

How can I reduce the impact of the increase in the CCL?

The CCL has been put in place to make an impact on climate change by incentivising businesses to reduce their carbon emissions, which can be achieved through the implementation of renewable technology and energy saving measures.

CircoSense’s CS4000 device reduces energy costs and lowers carbon emissions through its patented artificial intelligence technology, which learns hot water usage patterns, giving hot water when required, and switching the pump off when there is no demand. The CS4000 will therefore not only save money on a business’s hot water costs, but will reduce CCL charges at the same time, with the added benefit of helping meet carbon reduction targets.

To find out more about CircoSense, visit our website or email us at info@circosense.com for a no-obligation assessment of your building portfolio to see how much the CS4000 can reduce your hot water bills and lower carbon emissions and costs.