Latest CCL ChargesLatest CCL Charges (Climate Change Levy) a tax on energy delivered to business users in the UK
The Climate Change Levy Rates (CCL) is a tax on energy delivered to non-domestic users in the United Kingdom. Its aim is to provide an incentive to increase energy efficiency and to reduce carbon emissions, however there have been ongoing calls to replace it with a proper carbon tax. Introduced on April 1st, 2001 under the Finance Act 2000 it was forecast to cut annual emissions by 2.5 million tonnes by 2010, and forms part of the UK’s Climate Change Programme.
The Climate Change Levy Rates applies to most energy users, with the notable exceptions of those in the domestic and transport sectors. Electricity generated from new renewables and approved co-generation schemes is not taxed although electricity from nuclear energy is taxed even though it causes no direct carbon emissions.
CCL Main Rates
| Period | Electricity (£/kWh) | Gas (£/kWh) | LPG (£/kg) | Other Solid Fuels (£/kg) |
|---|---|---|---|---|
| Apr 2022 – Mar 2023 | £0.00775 | £0.00406 | £0.02175 | £0.02653 |
| Apr 2023 – Mar 2024 | £0.00775 | £0.00672 | £0.02175 | £0.05258 |
| Apr 2024 – Mar 2026 | £0.00775 | £0.00775 | £0.02175 | £0.06064 |
| Apr 2026 – Mar 2027 (current) | £0.00801 | £0.00801 | £0.02175 | £0.06264 |
| Apr 2027 onwards | £0.00827 | £0.00827 | £0.02175 | £0.06468 |
Source: HMRC Climate Change Levy rates. Updated May 2026.
Climate Change Levy Reduced Rates
From the 1st April each year the Government increases the CCL Charges (Climate Change Levy). This means that for any energy used where CCL applies, it will be charged at the new rate from this date onward, and on the previous rate prior to this date.
From the 1st April customers will see the new charges for CCL on their bill for their business electricity and gas consumption. If a customer’s bill is for a period that crosses the CCL rate change, both the old and new rate will be shown and they’ll be charged the correct rate for the date the energy was used.
Businesses that hold a Climate Change Agreement (CCA) qualify for reduced CCL rates. The reduced rates are expressed as a percentage of the main rate.
CCL Reduced Rates (CCA Holders) from 1 April 2026
| Commodity | % of Main Rate | Effective Rate (Apr 2026) |
|---|---|---|
| Electricity | 8% | £0.000641/kWh |
| Natural gas | 11% | £0.000881/kWh |
| LPG | 23% | £0.005003/kg |
| Other solid fuels | 11% | £0.006890/kg |
Reduced rates apply to businesses with a valid Climate Change Agreement. Source: HMRC CCL rates from 1 April 2026.
Further Advice
HM Revenue and Customs is responsible for publishing the active CCL rates and planned amendments to the rates. A general guide to Climate Change Levy is available at www.gov.uk/guidance/climate-change-levy-rates. The CCL is added to energy bills before VAT and, although there is no legal requirement to itemise it, it often appears as a separate item on bills. Because the levy sits inside the bill total, it is itself subject to VAT on business electricity and gas, charged at the standard 20% rate — though many businesses qualify for a reduced 5% rate.
The Mineralogical Metallurgical Exclusion (MinMet)
Depending upon eligibility the MinMet exclusion provides a discounts for CCL charges, and potentially full CCL depending upon processes and methods.
A business can make the most of recent legislative changes by gaining fiscal relief from the CCL, allow our experts to assess your companies viability for a Mineralogical and Metallurgical exclusion and potentially save thousands of pounds.
We will manage the application process while you sit back and receive the benefits.
Climate Change Levy: Frequently Asked Questions
What is the Climate Change Levy?
The Climate Change Levy is a UK tax on the energy that businesses and public sector bodies use. It covers electricity, gas, LPG and other solid fuels supplied to non-domestic users, and the idea is to push organisations towards using less and lowering their carbon emissions. Domestic energy and most transport fuel fall outside it.
Who pays the Climate Change Levy?
Most businesses, public sector organisations and other non-domestic energy users pay it. Your supplier adds the levy to your bill and passes it on to HMRC, so you never deal with HMRC directly. Households are not charged, and charities carrying out non-commercial work are usually exempt.
How much is the Climate Change Levy in 2026?
From 1 April 2026 the main rate is 0.801p per kWh on both electricity and gas. LPG is charged at 2.175p per kg and other solid fuels at 6.264p per kg. The rates normally rise each April, so check the table above against the dates shown on your bill.
How is the Climate Change Levy calculated?
It is worked out on the energy you actually use. The supplier multiplies your metered consumption by the rate for each fuel, then adds the total to your bill before VAT. When a billing period runs across the 1 April change, both the old and new rates are applied to the relevant days.
What does CCL mean on my electricity bill?
CCL is the line for the Climate Change Levy. Suppliers are not legally required to itemise it, but many show it as a separate charge next to your unit rates and standing charge. It is applied before VAT is added.
Who is exempt from the Climate Change Levy?
Domestic users and charities engaged in non-commercial activities are exempt, along with very small users who fall under the de minimis threshold. Energy used in certain mineralogical and metallurgical processes can also be excluded, and businesses holding a Climate Change Agreement pay a reduced rate rather than the full one.
How do I claim Climate Change Levy relief?
If you hold a Climate Change Agreement you qualify for the reduced rate. You send a PP11 supplier certificate to your energy supplier so the discount shows on your bills, and a PP10 to HMRC. We can check whether your sites and processes qualify and handle the paperwork for you.
When was the Climate Change Levy introduced?
It came into effect on 1 April 2001 under the Finance Act 2000, as part of the wider UK Climate Change Programme.