Climate change is widely recognised as the most important environmental challenge facing all countries today. There is growing scientific consensus on the potential impact on our climate of increasing concentrations of greenhouse gases.
CCL is a government initiative introduced in 2001 to encourage businesses to be more energy efficient to reduce greenhouse gas emissions and to help meet the UK’s environmental targets.
The levy is chargeable only on units/kWh used and not on any other part of the bill, e.g. the standing charge. VAT at the standard rate is added to CCL charges.
Separate CCL rates have been set for electricity and gas, and are index-linked, so likely to change on 1 April each year.
In certain circumstances, businesses will be wholly or partly excluded, or exempt, from paying CCL on their energy supply.
Where VAT is charged at the reduced rate, the supply is excluded from CCL
Where VAT is charged at the standard rate, CCL (plus VAT on CCL) will usually be added to the bill.