Consumers hit with Climate Change Levy (CCL)

In the March 2016 Budget, the government announced it would scrap the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) at the end of the 2018/19 compliance year. As a result, CCL would be the UK’s only carbon tax on energy bills.

The government has therefore increased the CCL rate – which is an environmental tax on energy delivered to non-domestic users – from 1 April 2019 to recover the revenue from abolishing the CRC.

CCL increases:

  • from 0.583p/kWh on electricity bills to 0.847p/kWh from April 19, then back down to 0.811p/kWh from 04/20
  • from 0.203p/kWh on gas bills to 0.339p/kWh from April 19 and up again to 0.406p/kWh from 04/20


Any customers who are currently paying the full rate of CCL will see these increases unless they are eligible for exemption.

Exemptions can be awarded to consumers in energy-intensive industries who have Climate Change Agreements (CCA) containing targets agreed with The Environment Agency for improving their energy efficiency or reducing carbon emissions.

Discounts for customers with CCAs are also increasing:

  • from 90% on electricity bills to 93% from April 19 back down to 92% from April 20
  • from 65% on gas bills up to 78% from April 19 and up again to 81% from April 20


If you do not qualify for a CCA, the only real way of mitigating these new CCL costs is by reducing your consumption or generating it yourself. Litmus has made special arrangements with expert service partners who can help with both solutions.

Please call Phil Silva, Partner, Central Services on 01276 673880 to discuss your needs and he will help arrange an informal meeting with our energy experts.