CCL CCA SECR Energy Taxes

When a company pays its energy bills, the business is paying a tax to the government called the Climate Change Levy.

Until 2019 under the CRC Energy Efficiency Scheme (CRC), large, non-energy-intensive organisations used to buy allowances for the amount of carbon dioxide (CO2e) they were responsible for. Envisaged as a cash recycling scheme, the CRC became a tax and was both complicated and brought no advantage to companies doing the right thing. The CRC ended in March 2019. In order to recover lost revenue., Government have increased the Climate Change Levy (CCL) which transfers the revenue collection in a simpler form through the energy bill.

From April 2019, the rate of the CCL increased by 45% for electricity and by 67% for gas. This is NOT against your total energy costs, but the rate of the levy (which is a small percentage of the total cost). Henceforth, for every kWh of energy you save, will help to reduce your tax burden!

Some of our larger customers that are significant (energy intensive) users of energy, can apply for a discount of the CCL, under specific Climate Change Agreements (CCA). These are organised through specific trade association. To receive the discount, companies must commit to achieving energy reductions. Available discounts on the CCL are 93% for electricity and 78% for gas.

All of this links to SECR which also came into being from 1 April 2019. This requires companies to publicise their energy and CO2e emissions alongside their annual accounts.