Climate Change Levy

The Climate Change Levy is a UK environmental tax on non-domestic energy supply, introduced in 2001. It is charged per unit (kWh) of electricity, natural gas, LPG and solid fuel and appears as a separate line on every non-domestic energy bill, on top of unit rate, standing charge and VAT.

Key points for customers:

• CCL applies to non-domestic supply only. Domestic supply is exempt.
• Some categories of small or low-volume use can fall under de minimis exemption — typically very low monthly volume thresholds — and are then treated for CCL as if domestic.
• Charity-controlled premises used for non-business purposes can be exempt.
• Energy-intensive sectors with a Climate Change Agreement can pay a reduced rate on qualifying supply.

The supplier collects CCL through the bill and remits it to HMRC; eligibility for any reduction or exemption is asserted by the customer through a declaration certificate (typically a PP10 / PP11 for industrial use or a charity declaration), which the supplier holds on file. Misclassified meters are common — particularly where a building has been through a change of use or registered occupier — and we audit the certificate position alongside the unit rate as part of the standard procurement audit.