What is CCL (Climate change levy) ?

Climate change levy (CCL) is a authorities imposed tax which inherited effect from 01 April 2001. The amount from this tax becomes towards the government’s energy efficiency plan to cut down greenhouse gas emissions by 2010. Consumers that pay value-added tax at 20% will pay CCL. Electricity providers don’t make any money from the CCL charge, all income belongs to the government. Rate of levy are as comes after:

· Electricity 0.43/kWh
· Gas 0.15/kWh
· LPG 0.96/kWh
· Coal 1.17/kWh

Fuel Oils* will be exempt from levy because they’re already dependent to strike tax obligation. It is the government’s intention to raise just about £1 billion during 2001/2, and intends to redistribute the tax accumulated via a 0.3% reduction in employers N.H.I. contributions, together with an allocation of £150 million for support to energy efficiency and renewables.

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Exemptions:
· New forms of renewable energy except large hydr- electricity plants or nuclear power Stations of the Cross
· “Good Quality” combined heat and power plants under the CHPQA programme.
· Energy products that act as both fuel and feedstock, within the same process (electrolytic processes)
· Public Transport Services that are 0% VAT registered
· Charities
· Natural Gas in Northern Ireland (for up to 5 years)
· Domestic users and 5% VAT registered users < 1000kWh per month (12,000kWh or Units per year)
· The Horticulture Sector will be eligible for a discount of 50% in the rate of levy for up to 5 years
· Certain energy intensive users - particularly Cement, Chemical, Ceramics, Food & Drink, Aluminium, Paper, Foundries, Non-Ferrous metals and Steel.

These Industries will be entitled to 80% discount from CCL providing they sign up to energy saving targets agreed between the government and relevant trade associations.

If you like to claim relief or exemption, you ask to provide apposite evidence to your supplier. If you are a business customer with domestic use or non
business charity use, you may achieve this by existing qualifying arrangements for reduced rate of VAT.

In respect of other reliefs (except renewable electricity) you'll need to provide your provider with a accomplished certificate. The credential should be provided for the asking by the supplier.

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