Are you Eligible for Climate Change Levy Tax Relief?

Award-winning Energy Partner, Professional Energy Purchasing (PEP) discusses how some businesses might be entitled to rebates and reductions on energy bills.

Climate Change Levy Tax (CCL) is an environmental tax charged on the energy used by businesses.  Its aim is to encourage businesses to be more energy-efficient and to reduce their emissions. CCL is charged on the energy units/kWh used and not on any other component of the bill such as fixed daily charges.

It specifically applies to businesses in the industrial, commercial, public services, and agricultural sectors, and is charged on ‘taxable commodities’ for heating, lighting, and power purposes.

Apart from a few exemptions, businesses in these sectors will be charged CCL on the rates below by their energy supplier which will be listed on gas and electricity bills. This will automatically be passed onto HMRC.


CCL rates per kilowatt-hour on natural gas and electricity

1st April 2016 to 31 March 2017 0.195p/kWh 0.559p/kWh
1st April 2017 to 31st March 2018 0.198p/kWh 0.568p/kWh
1st April 2018 to 31st March 2019 0.203p/kWh 0.583p/kWh
1st April 2019 to 31st March 2020 0.339p/kWh 0.847p/kWh
1st April 2020 to 31st March 2021 0.406p/kWh 0.811p/kWh


Do I need to pay CCL tax?

There are a few business exceptions to paying the full CCL tax and if you’ve been overpaying you could be entitled to a rebate.

1          Charities engaged in non-commercial activities, and businesses that consume energy below the de minimis limit.

2          Businesses that use materials within mineralogical or metallurgical processes listed by HMRC to ensure their products can compete with other similar EU products.  These include:

  • Stone cutting
  • Metal production
  • Metal casting
  • Forging
  • Pressing
  • Stamping
  • Rolling
  • Coating metals


Case Study  

Charles H Coward is an award-winning Sheffield-based manufacturer of castings that are supplied worldwide.  PEP have recouped over £5,400 in CCL rebates for them plus ongoing savings of over £3000 per year on their energy costs.


PEP is the Energy Partner for the Barnsley & Rotherham Chamber of Commerce.  They have successfully helped customers claim over £100,000 in CCL tax refunds.

Get in touch

Contact the team for an initial discussion to see how they can help you.

T: 0114 327 2645    E: [email protected]

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