Business energy
Climate Change
Levy (CCL)
The tax on business energy
30+ UK suppliers- The Climate Change Levy (CCL) is a tax on business energy use, shown as a separate line on your gas and electricity bills.
- Most businesses pay it; it's charged per unit of energy used.
- Some qualify for relief or reduced rates — including charities, very low users, and those on a Climate Change Agreement.
- It's separate from VAT, which business energy is also usually charged at the standard rate.
Look closely at your business gas or electricity bill and you'll likely spot a line for the Climate Change Levy. It's a tax many business owners pay without quite knowing what it is — so here's a plain-English explanation.
What the CCL is
The Climate Change Levy (CCL) is a government tax on the energy businesses use, charged per unit (kWh) of electricity and gas. It's designed to encourage businesses to use energy more efficiently and support lower-carbon operation. It appears as a separate line on your bill.
Who pays it
Most businesses pay the CCL on their gas and electricity. It's applied automatically by your supplier, so for the majority it's simply part of the bill.
Who can get relief
Not everyone pays the full rate. Reliefs and exemptions can apply to:
- Charities engaged in non-commercial activities.
- Very low energy users — small amounts of energy can fall under reduced or de minimis treatment.
- Businesses with a Climate Change Agreement — energy-intensive sectors that commit to efficiency targets can get a significant reduction.
If you think you might qualify, it's worth checking — it comes off every bill.
CCL vs VAT
The CCL is separate from VAT. Business energy is usually charged VAT at the standard 20% (with a reduced 5% rate for very low usage and charities), and the CCL sits alongside it as its own line. We cover the full bill breakdown in our guide on reading your energy bill.
Want your energy bill — levies and all — checked and compared? Send us a recent copy and we'll benchmark the market for you. Free, no obligation. Call 0845 862 1947 or get in touch.
The CCL is a standard part of most business energy bills — a tax on the energy you use, nudging efficiency. Know whether you qualify for relief, and understand it sits separately from VAT, and your bill will make a lot more sense.