What is the Climate Change Levy (CCL)?

Climate Change Levy (CCL) is a tax on energy for non-domestic users which has been implemented to encourage energy efficiency and reduce carbon emissions. Valda Energy collects Climate Change Levy (CCL) on behalf of HM Revenue and Customs.

CCL and VAT is charged depending on your average daily consumption for each billing period. If you are an electricity customer, and you consume a minimum of 33 units per day, or a gas customer consuming a minimum of 145 kWh per day then you will be charged CCL and VAT will also be charged at the standard rate of 20%.

If your average daily consumption for a billing cycle falls below these thresholds, then CCL will not be charged in this period and VAT will be charged at the lower rate of 5%.

Many of our customers have seasonal variations on their usage and so their CCL and VAT charges can differ from one period to the next.

There are some businesses which are exempt from CCL and the standard VAT rate (e.g. charities) and some businesses which may have a percentage of domestic use in their premises which they can register for exemption from CCL & VAT at 20%.

For more information on this please visit the HMRC website or contact your Accountant or Financial Advisor.