Environmental guidance for your business in Northern Ireland & Scotland
Climate change levy (CCL) is designed to encourage businesses to reduce their energy consumption or use energy from renewable sources.
Your business can also reduce costs through minimising your energy use.
The CCL applies to supplies of the following:
Users of energy from these sources must pay the tax. The levy is imposed at the time of supply, so it will already be included in your energy bills. Suppliers of these services collect the tax. Note that supplies for domestic use and to charity users for non-business purposes are excluded. Small quantities of fuel and power (de minimis) can be treated as being domestic use even when they are supplied to a business.
The levy is charged at an exact rate per unit of energy. The rates for 1 April 2013 are as follows:
Rate from 1 April 2016
Rate from 1 April 2017
Rate from 1 April 2018
Rate from 1 April 2019
Reduced rate of CCL for CCA holders
|Electricity||0.559 pence per kilowatt hour||0.568 pence per kilowatt hour||0.583 pence per kilowatt hour||0.847 pence per kilowatt hour||10% (7% after 2019)|
|Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility.||0.195 pence per kilowatt hour||0.198 pence per kilowatt hour||0.203 pence per kilowatt hour||0.339 pence per kilowatt hour||35%(22% after 2019)|
|Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state. LPG||1.251 pence per kilogram||1.272 pence per kilogram||1.304pence per kilogram||2.175 pence per kilogram||35%(22% after 2019)|
|Any other taxable commodity.||1.526 pence per kilogram||1.551 pence per kilogram||1.591 pence per kilogram||2.653 pence per kilogram||35%(22% after 2019)|
CCL has a reduced rate and a range of exemptions.
If your type of business is deemed as energy intensive - such as aluminium, chemicals and food - the reduced rate could apply and you may get a 90 per cent reduction if you join an agreement to meet energy-efficiency or carbon-saving targets negotiated by your trade body and the government. To qualify, you must meet binding targets - reviewed every two years - for reducing energy use.
To check whether your business is eligible and how to join a scheme, see the page in this guideline: Climate change agreements.
The following are exempt from the levy:
Climate change levy
Stay informed: Coronavirus (COVID-19), In this challenging time, NetRegs’ running organisations the Scottish Environment Protection Agency (SEPA) and the Northern Ireland Environment Agency (NIEA) have created information websites to keep you informed on the current situation....
NetRegs: Supporting businesses across Scotland and Northern Ireland, Businesses in Scotland and Northern Ireland have a huge role to play in helping to deliver world-leading climate change action, not only by ensuring environmental compliance, which is non-negotiable, but going beyond compliance to achieve a low carbon and circular economy.
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