Changes to CCL rates came into effect on the 1st of April 2020 and will appear on your next invoice.
Businesses and public sector organisations are likely to be impacted by the change in Climate Change Levy (CCL) rates which came into effect on the 1st of April 2020.
The changes will also affect solid fuel and liquefied petroleum gas (LPG) suppliers.
The main rates of the Climate Change Levy will be amended for 2020 to 2021 and 2021 to 2022 which can be seen in the table below.
|Commodity||Rate from 1st April 2020||Rate from 1st April 2021|
|Electricity||0.811 p/kwh||0.775 p/kwh|
|Gas||0.406 p/kwh||0.465 p/kwh|
|Petroleum gas or other gaseous hydrocarbon in liquid state||2.175 p/kwh||2.175 p/kwh|
|Any other taxable commodity||3.174 p/kwh||3.640 p/kwh|
The changes were initially announced in the 2018 budget and qualifying businesses in the Climate Change Agreement Scheme could see a reduction in CCL rates. The changes should limit the impact on participants to just a Retail Price Index increase.
The aim of changing the main CCL rates is an attempt to rebalance the electricity to gas ratio – this will see the electricity rate lowered and gas increased over the next two years.
As a result, the gas rate will reach 60% of the electricity rate in 2021 to 2022.
The CCL is a UK wide tax on energy and fuels which are purchased by businesses and the public sector, introduced in 2001, The main rates are paid by suppliers to the government, who then pass on these costs to their non-domestic customers via their utility bills.
If you would like to learn more about CCL rates, get in touch with one of our consultants by calling on 01257 239500 or by emailing [email protected].