Energy Services
Climate Change Levy
The Climate Change Levy (CCL) is a tax on energy use introduced by the government based on a recommendation from the Marshall report that was commissioned to establish ways of reducing energy consumption in the UK. This was to ensure that the government met its obligations under the Kyoto Protocol to reduce greenhouse gas emissions.
The European member states agreed to meet an overall 8% reduction compared to 1990 levels. This target was then redistributed between the member states to reflect their national circumstances, requirements for economic growth, and the scope for further emission reductions. The UK agreed to reduce its emissions by 12.5%, which is its legally binding target under the Kyoto Protocol. Targets for other member states ranged from -21% for Germany and Denmark, to -6% for the Netherlands, +13% for Ireland and +27% for Portugal.
The Climate Change Levy was a flat rate tax on energy consumption charged in pence per kilowatt hours used when it was originally introduced in April 2001 however in March 2006 the government announced that the rate of tax under the Climate Change Levy would rise with inflation starting in April 2007
| Climate Change Levy - tax rates April 2007 | Climate Change Levy - tax rates April 2008 | |
|---|---|---|
| Gas | 0.154p/kWh | 0.159p/kWh |
| Electricity | 0.441p/kWh | 0.456p/kWh |
| Coal | 1.201p/kg | 1.242p/kg |
| Liquefied Petroleum Gas (LPG) | 0.985p/kg | 1.018p/kg |
energyTEAM will be pleased to help you reduce the impact of this tax. There are four potential methods of achieving this.
- Purchase "Green Energy" which is CCL exempt.
- Enter in to a Climate Change Agreement to obtain up to an 80% levy discount.
- Reduce the amount of energy that you use hence reduce the impact of the tax.
- Use Electricity generated by "Good Quality" Combined Heat & Power plant.
For customers where a Climate Change Agreement is applicable, energyTEAM will be pleased to help you in a number of ways:-
- Climate change agreement applications both IPPC and 'Energy Intensive' methods of entry
- Levy discount % evaluation and maximisation
- On-going support
- Evidence pack evaluation audits
- Product/fuel mix algorithms
- Carbon emissions verification