Changes to Climate Change Levy (CCL)
The Climate Change Levy (CCL) is an environmental tax on a company's electricity and gas use.
Businesses that pay the standard rate of VAT (20%) are also charged the CCL, although there are exceptions. Those that meet the minimal use requirements and are charged the reduced rate of VAT (5%) don't pay the CCL.
• For electricity, this means using an average of less than 33 kWh per day (1,000 kWh per month)
• For gas, this means using an average of less than 145 kWh per day (4,397 kWh per month)
From 1st April 2019 the government is increasing the rate of CCL; from 0.583 pp kWh to 0.847 pp kWh for Electricity, and from 0.203 pp kWh to 0.339 ppkWh for Natural Gas.
This is an increase of 45% for electricity and 67% for gas. We wanted to make you aware of these changes so that you can plan your budgets accordingly.
With energy prices constantly on the rise this may seem like just more bad news. However, in reality the CCL charge makes up a very small percentage of your overall energy bill.
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Of course, Utilitas are still working hard to ensure that when your energy contracts renew we are making the most of our excellent supplier relationships, and finding you the most competitive prices.
CCL Exemption:
The are a number of businesses for whom CCL exemptions are available, the key ones include: domestic supplies, charity exemption, de-minimus consumers (less than 1,000kWh electricity or 4,397kWh gas in a given month), customers with Climate Change Agreements (CCA’s) in place, and for use in metallurgical and mineralogical processes.
If you fit into any of the above categories, and are not currently claiming CCL exemption, or being over charged, please contact us, we have successfully assisted clients to ‘back claim’ CCL charges, resulting in massive credits.