Climate change levy increases

From the 1st April 2011 the Government is raising the climate change levy (CCL).

For electricity the present CCL rate is 0.47p per kilowatt hour (kWh) this is set to rise to 0.485p kWh.  The rate for natural gas will also increase, rising from 0.164p kWh to 0.169p kWh.  The rate for liquid Petroleum gas will increase from 1.050p per kg to 1.083p per kg.

The levy is part of a range of measures designed to help the UK meet its legally binding commitment to reduce greenhouse gas emissions. It is chargeable on the industrial and commercial supply of taxable commodities for lighting, heating and power by consumers in the following sectors of business:- industry, commerce, agriculture, public administration and other services.


The levy does not apply to taxable commodities used by domestic

All revenue raised through the levy is recycled back to business through a 0.3 per cent cut in employers’ national insurance contributions, introduced at the same time as the levy, and support for energy efficiency and low carbon technologies.

The CCL charge was introduced on 1st April 2001 under the finance Act 2000.  It was forecast to cut annual emissions by 2.5m tones by 2010 and forms part of the UK’s climate change programme.