The Climate Change Levy (CCL) is another charge that often raises questions for UK businesses. Unlike wholesale energy costs, CCL is a government-imposed tax designed to encourage more energy-efficient behaviour.
What is the Climate Change Levy?
The Climate Change Levy is a tax on energy use for businesses and public sector organisations. It applies to:
- Electricity
- Gas
- Solid fuels
The aim is to reduce carbon emissions by incentivising businesses to become more energy efficient or invest in cleaner alternatives.
Who pays CCL?
Most UK businesses pay CCL as part of their energy bills. It is shown as a separate line item and is charged per unit of energy used.
However, not all businesses pay the full amount.
Are any businesses exempt or eligible for reductions?
Yes – some organisations may qualify for CCL relief or exemptions, including:
- Certain charities
- Businesses with Climate Change Agreements (CCAs)
- Specific energy-intensive industries
If you’re eligible and not claiming relief, you could be paying more than you need to.
Why CCL matters to your business
While CCL rates may look small, over a year they can add up to a significant cost – particularly for:
- Energy-intensive businesses
- Multi-site organisations
- Businesses locked into inefficient contracts
Understanding CCL can help you:
- Forecast costs more accurately
- Improve energy efficiency
- Reduce avoidable spend
How TST supports businesses with CCL
TST works with businesses to:
- Review energy bills for CCL accuracy
- Identify potential exemptions or reductions
- Source smarter energy solutions that reduce overall consumption
If you’re unsure whether you’re paying the correct amount, it’s worth checking.
