Tackling Climate Change - Climate Change Levy

Author: Ricardo Alan

Author: Ricardo Alan

The CCL is an environmental energy tax that adds approximately 15% to a typical energy bill.

The CCL is taxable on commodities' such as lighting, heating and power used by industrial commercial customers.

'Taxable commodities' include:

> Electricity

> Natural gas (as supplied by a gas supplier)

> Petroleum and hydrocarbon gas in a liquid state

> Coal and lignite

> Coke and semi-coke of coal or lignite

> Petroleum coke

The levy does not apply to taxable commodities used by domestic consumers, or by charities for non-business use.

Are you exempt?

There are a number of reasons why you would be exempt from such a tax. These include being a charity, being a renewable energy user, or a company that have entered into agreements with the government to receive discounts in return for energy efficiency targets.

How is the Climate Change Levy calculated?

The levy has a separate rate for each category of taxable commodity, as is a follows:

> Electricity = 0.0043 per kilowatt hour

> Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility = 0.0015 per kilowatt hour

> Any petroleum gas, or other gaseous hydrocarbon supplied in a liquid state = 0.0096 per kilogram

> Any other taxable commodity = 0.0117 per kilogram

What do I need to do?

If you are in business and are making or intend to make taxable supplies, you need to contact HM Revenue & Customs and register for the Climate Change Levy.

Can I get a discount?

Customers in energy-intensive industries who have entered into Climate Change Levy agreements with the government can get an 80% reduction of their CCL. To claim the 80% discount, you will be required to fill out a PP10/PP11 certification and send a copy of the certificates to HM Revenue & Customs and to your energy supplier before the discount can be arranged.About the Author:

British Gas Business offer a range of products and services tailored to the business market, including fixed price energy contracts, boiler and central heating services, an online business insurance comparison service, and a connections and metering service for new energy supplies, conversions and upgrades.

Customers can visit http://www.britishgas.co.uk/business for further information about epc and display energy certificates.

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