Climate Change Levy (CCL)
What is Climate Change Levy and how will it affect you?
In 1997 the EU signed an agreement, at the Kyoto summit on CCL, to reduce greenhouse gas emissions by 8% by 2010 on the levels recorded during 1990. The UK government’s binding target is to achieve greenhouse gas emissions of 12.5% between 2008 and 2012 but they have aspirations to achieve reductions of 20% to initiate these changes.
CCL will affect all non-domestic consumers of energy with certain exclusions including, children’s homes and residential and retirement homes, school and university accommodation, some leisure facilities and monasteries.
CCL is charged at flat rate on each kWh of energy consumed at the following rates:-
- Electricity 0.43p/kWh
- Natural Gas 0.15p/kWh
- Coal/Lignite 1.17p/kg (approx 0.15p/kWh)
- LPG 0.96p/kg (approx 0.07p/kWh)
Discounts
Some energy-intensive industries are eligible for discounts of up to 80%; in return for the reduction a contract is signed between the industry and the Government and commits the industry to an energy reduction target over a ten-year time frame, which has milestone targets every two years.
The Government is expected to raise £1 billion from CCL, but it is intended that it will be revenue neutral to the Treasury.
CO2 Consultants are experts in assessing the amount of usage and therefore the amount of Climate Change Tax that would be applied to a bill. CO2 Consultants are able to offer a comprehensive energy reduction survey on your behalf and will even establish if funding or grants would be available to help in reducing the amount of utility purchased.