CCL Rates

HMRC has confirmed the new Climate Change Levy (CCL) rates, which will be effective from April 2021. These changes represent an increase for gas and a reduction in electricity rates, bringing the two rates more in line.

Current and New CCL Rates

Current 2021 Electricity Rate – 0.775 p/kwh
Current 2021 Gas Rate – 0.465 p/kwh

New 2022 Electricity Rate – 0.775 p/kwh
New 2022 Gas Rate – 0.568 p/kwh

New 2023 Electricity Rate – 0.775 p/kwh
New 2023 Gas Rate – 0.672 p/kwh

Understanding the Climate Change Levy (CCL)

The Climate Change Levy is paid at either the main rates or the carbon price support rates.

Main Rates

The main CCL rate will be paid on:

Electricity
Gas
Solid fuels (such as coal, lignite, coke, and petroleum coke)

Main rates apply if your business operates in one of the following sectors:

Industrial
Commercial
Agricultural
Public services

Exemptions

You do not pay the main rate on certain supplies if you’re a:

Business that uses small amounts of energy
Domestic energy user
Charity engaged in non-commercial activities

It is possible to get a reduction on the main CCL rates if you’re an energy intensive business and if you participate in the climate change agreement with the Environment Agency.

Reductions

It is possible to get a reduction on the main CCL rates if you’re an energy-intensive business and participate in the Climate Change Agreement with the Environment Agency.