Climate Change Levy

Tax levied on energy delivered to non-domestic users in the United Kingdom

Taxation in the United Kingdom

UK Government Departments

* HM Treasury
* HM Revenue and Customs

UK Government

* VAT
* Income tax
* PAYE
* National Insurance
* Health and Social Care Levy (proposal abolished)
* Corporation tax
* Capital gains tax
* Motoring taxes
* Inheritance tax
* Stamp Duty
* Stamp Duty Reserve Tax
* Stamp Duty Land Tax
* Annual Tax on Enveloped Dwellings
* Insurance Premium Tax
* Air Passenger Duty
* Petroleum Revenue Tax
* Aggregates Levy
* Various alcohol- and gambling-related duties
* Bingo Duty
* Climate Change Levy
* Landfill tax
* Machine Games Duty
* Tobacco Duty
* Vehicle Excise Duty
* Energy Profits Levy

Scottish Government

* Revenue Scotland
* Scottish income tax
* Land and Buildings Transaction Tax
* Scottish Landfill Tax
* Air Departure Tax

Welsh Government

* Taxation in Wales
* Welsh Revenue Authority
* Welsh Rates of Income Tax
* Land Transaction Tax
* Landfill Disposals Tax

Local Government

* Council Tax
* Business rates
* England
* Council Tax
* Business rates
* Scotland
* Council Tax
* Business rates
* Visitor Levy

* Wales
* Council Tax
* Business rates
* Northern Ireland
* Domestic rates
* Business rates

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The Climate Change Levy (CCL) is a tax on energy delivered to non-domestic users in the United Kingdom.

## Scope and purpose

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Introduced on 1 April 2001 under the Finance Act 2000, it was forecast to cut annual emissions by 2.5 million tonnes by 2010, and forms part of the UK's Climate Change Programme.[citation needed] The levy applies to most energy users, with the notable exceptions of those in the domestic and transport sectors.[citation needed] Electricity from nuclear is taxed even though it causes no direct carbon emissions.[citation needed] Originally electricity generated from new renewables and approved cogeneration schemes was not taxed, but the July 2015 Budget removed this exemption from 1 August 2015, raising £450m/year.[1]

## Rates

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From when it was introduced, the levy was frozen at 0.43p/kWh on electricity, 0.15p/kWh on coal and 0.15p/kWh on gas.[citation needed]

A reduction of up to 90% from the levy may be gained by energy-intensive users provided they sign a Climate Change Agreement.[2]

Revenue from the levy was offset by a 0.3% employers' rate reduction in National Insurance. However, the Finance Act 2002 subsequently increased that rate by 1%, reversing the reduction. The revenue used to fund a number of energy efficiency initiatives such as The Carbon Trust. However, revenue recycling was removed at the Spending Review 2010, with the revenue going to the Exchequer. [3]

In the 2006 budget it was announced that the levy would in future rise annually in line with inflation, starting from 1 April 2007.[4] In the 2018 Budget, it was announced that the rates of the Climate Change Levy would be adjusted until 2022 so that the gas rate reaches 60% of the electricity rate in 2021 to 2022. [5]

Rates have changed as tabulated below.

Rates from 1 April 2013[6] Fuel type | Rate

|

Electricity | 0.541 p/kWh
Gas | 0.188 p/kWh
LPG | 1.21 p/kg
Any other "taxable commodity"  | 1.429 p/kg
Rates from 1 April 2019[7] Fuel type | Rate

|

Electricity | 0.847 p/kWh
Gas | 0.339 p/kWh
LPG | 2.175 p/kg
Any other "taxable commodity"  | 2.653 p/kg
Rates from 1 April 2020[8] Fuel type | Rate

|

Electricity | 0.811 p/kWh
Gas | 0.406 p/kWh
LPG | 2.175 p/kg
Any other "taxable commodity"  | 3.174 p/kg

## See also

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* Climate change in the United Kingdom
* Environmental tax
* Energy policy of the United Kingdom
* Energy in the United Kingdom
* Renewables Obligation (United Kingdom)

## References

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1. ^ "Summer Budget 2015" (PDF). HM Treasury. 8 July 2015. pp. 73 and 93.
2. ^ "CCL Rates and Allowances". Retrieved 1 January 2019.
3. ^ "Climate Change Levy rates" (PDF). Archived from the original (PDF) on 1 January 2019. Retrieved 7 December 2018.
4. ^ "Deloitte UK Budget Report 2006". Archived from the original on 10 May 2006. Retrieved 23 June 2006.
5. ^ "Changes to rates for the Climate Change Levy from 6 April 2020". GOV.UK. Retrieved 16 October 2020.
6. ^ HMRC Reference: Climate Change Levy rates
7. ^ "Climate Change Levy rates". GOV.UK. Retrieved 25 May 2019.
8. ^ "Climate Change Levy rates". GOV.UK. Retrieved 25 May 2019.

## Further reading

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* House of Commons Environmental Audit Select Committee (19 February 2008). "Reducing Carbon Emissions from UK Business: The role of the Climate Change Levy and Agreements". UK Parliament website. Retrieved 30 August 2009.
* "Reducing Carbon Emissions from UK Business: The role of the Climate Change Levy and Agreements: Government Response to the Committee's Second Report of Session 2007–08". 20 May 2008. Retrieved 30 August 2009.
* Pearce, D. (2005). "The United Kingdom Climate Change Levy: A study in political economy" (PDF). OECD Environment Directorate, Centre for Tax Policy and Administration. Archived from the original (PDF) on 1 May 2011. Retrieved 21 January 2010.

## External links

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* HMRC – Climate Change Levy in depth

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Energy in the United Kingdom

Companies

| Coal|

* Anglo American
* BHP
* ENRC
* GCM Resources
* Glencore
* Rio Tinto
* UK Coal

|

Oil and
gas|

| Integrated|

* BP
* Shell

|

Exploration
and production|

* Afren
* BHP
* Capricorn Energy
* Centrica
* Dana Petroleum
* Desire Petroleum
* Emerald Energy
* EnQuest
* Essar Energy
* Harbour Energy
* Hardy Oil and Gas
* JKX Oil & Gas
* Melrose Resources
* Ophir Energy
* Perenco
* Pharos Energy
* Regal Petroleum
* Rockhopper Exploration
* Star Energy
* Tullow Oil

Supply|

* Greenergy
* Murco Petroleum

Support|

* Abbot Group
* Amec Foster Wheeler
* Expro
* Hunting
* John Wood Group
* Petrofac
* Qserv
* Weir Group
* WesternGeco1

Utilities|

| Integrated|

* Centrica
* E.ON UK1
* EDF Energy1
* Npower1
* ScottishPower1
* SSE

|

Generation
and supply|

| Generation|

* Drax Group
* Engie Energy International
* Horizon Nuclear Power1
* Renantis
* Vattenfall UK1
* Vedanta Resources

|

Supply|

* 100Green
* Bristol Energy
* Co-op Energy
* Ecotricity
* ESB Group
* Firmus Energy
* Good Energy
* Octopus Energy
* Opus Energy
* Outfox the Market
* OVO Energy
* Phoenix Natural Gas
* Shell Energy
* TotalEnergies Gas & Power
* Utilita Energy
* Utility Warehouse

Distribution|

| Electricity|

* Electricity North West1
* Northern Powergrid1
* SP Energy Networks1
* SSE Power Distribution
* UK Power Networks1
* Western Power Distribution1

|

Gas|

* Cadent Gas
* Firmus Energy
* Northern Gas Networks
* Phoenix Natural Gas
* SGN
* Wales & West Utilities1

Transmission|

| Electricity|

* National Grid2
* Scottish Hydro Electric Transmission
* SP Energy Networks1

|

Gas|

* National Grid

Other|

* Aggreko
* APX Group
* Aquamarine Power
* EnServe
* Hi-Gen Power
* Mark Group
* United Downs Deep Geothermal Power
* Wavegen

Companies with headquarters and/or registered office in the UK but no applicable energy operations within the country shown in italics 1Ultimate parent company is not UK-based 2Integrated in the United States, no generation or supply activities in the UK

Energy sources

| Coal|

* Coal Authority
* Coal-fired power stations
* Coal mines
* Coal mining regions
* Confederation of UK Coal Producers
* Greenhouse gas emissions
* History
* miners' strike
* National Coal Board
* Open-pit coal mining

|

Electricity|

* Association of Electricity Producers
* BritNed
* East–West Interconnector
* Economy 7
* Economy 10
* Electricity billing
* Energy switching services
* Green electricity
* Grid Trade Master Agreement
* Gridlink Interconnector
* HVDC Cross-Channel
* Isle of Man to England Interconnector
* Moyle Interconnector
* National Grid
* Control
* Reserve Service
* New Electricity Trading Arrangements
* North Sea Link
* Power stations
* Timeline of the electricity supply industry

Nuclear|

* Advanced Gas-cooled Reactor
* Franco-British Nuclear Forum
* Magnox
* Nuclear Decommissioning Authority
* Nuclear Liabilities Fund
* Nuclear power stations
* Office for Nuclear Regulation
* Sellafield
* United Kingdom Atomic Energy Authority
* United Kingdom National Nuclear Laboratory

Oil and gas|

* BBL Pipeline
* Dash for Gas
* Forties pipeline system
* Fuel protests
* Gas infrastructure
* Greenhouse gas emissions
* Hydrocarbon Oil Duty
* National Transmission System
* Natural gas fields
* Natural gas-fired power stations
* North Sea oil
* North Sea Transition Authority
* Offshore Energies UK
* Oil fields
* Oil-fired power stations
* Oil infrastructure
* Oil refineries
* Petroleum Revenue Tax

Renewables|

| Biofuels|

* Biofuel power stations
* NNFCC
* Renewable Fuels Agency
* Renewable Transport Fuel Obligation

|

Geothermal|

* Geothermal power stations

Hydroelectricity|

* Hydroelectric power stations
* Mersey Barrage
* Severn Barrage
* Wave farms

Solar power|

Wind power|

* Offshore wind power
* List of offshore wind farms
* List of onshore wind farms
* North Seas Energy Cooperation
* Wind power in Scotland

Government and regulation

| Organisations|

* Carbon Trust
* Cenex
* Climate Change Committee
* Department for Energy Security and Net Zero
* Department for Environment, Food and Rural Affairs
* Energy Saving Trust
* Environment Agency
* Office of Gas and Electricity Markets
* National Energy System Operator
* System Operator for Northern Ireland
* Scottish and Southern Electricity Networks
* Great British Energy
* Great British Energy – Nuclear

|

Legislation and initiatives|

* Carbon Emission Reduction Target
* Climate Change Act 2008
* Climate Change Agreement
* Climate Change and Sustainable Energy Act 2006
* Climate Change Levy
* CRC Energy Efficiency Scheme
* Decarbonisation measures in proposed UK electricity market reform
* Display Energy Certificate
* Energy Act 2013
* Energy performance certificate
* Fossil Fuel Levy
* Low Carbon Building Programme
* Non-Fossil Fuel Obligation
* Planning Act 2008
* Renewable Heat Incentive
* Renewables Obligation
* United Kingdom Climate Change Programme
* Energy price cap
* Energy Profits Levy

Non-governmental organisations

| Charities and
pressure groups|

* Ashden Award
* Bioregional
* Campaign against Climate Change
* Centre for Alternative Technology
* National Energy Action
* Stop Climate Chaos
* Tyndall Centre

|

Industry bodies|

* Association for Decentralised Energy
* Energy Institute
* Energy Networks Association
* Energy Retail Association
* Green Power Forum
* RenewableUK
* Utilities Intermediaries Association

Research|

* Centre for Renewable Energy Systems Technology
* Energy Technologies Institute
* Met Office Hadley Centre
* Narec
* Oil Depletion Analysis Centre
* Sunbury Research Centre
* UK Energy Research Centre

Energy conservation

* British Energy Efficiency Federation
* Close the Door campaign
* Code for Sustainable Homes
* Double Glazing & Conservatory Ombudsman Scheme
* EcoHomes
* Energy efficiency in British housing
* Energy Saving Trust
* Energy Saving Trust Recommended
* Greenhouse gas emissions
* HTB
* National Home Energy Rating

* Category

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