Are you paying too much CCL tax on utility bills?
The government announced the Climate Change Levy (CCL) scheme will be extended until March 2025. The scheme has now reopened to new entrants allowing businesses that have not signed up to save up to 92% on CCL tax, if they carry out one of the many eligible processes.
CCL is a tax paid by most businesses on their energy invoices and can account for a big part of their utility bill. The NFU CCL scheme enables operators in three sectors to get a discount where they use energy in the defined eligible processes for that sector which can be summarised as:
- Pigs – the rearing of pigs indoors for meat.
- Poultry – the rearing of poultry for eggs or meat.
- Horticulture – the growing crops within a protected environment such as a greenhouse.
Businesses that sign Climate Change Agreements receive a discount on CCL charged on energy bills in return for meeting energy efficiency targets. We’ve saved our sectors £millions on CCL since the introduction of the scheme in 2001.
- CCL rates levied on bills have increase in April 2020.
- Electricity CCL rate are 0.811 pence/kWh.
- Gas CCL rate 0.406 pence/kWh.
- LPG CCL rate 1.0875 pence/litre.
- Demonstrate, to your suppliers, you are committed to improving the environment and energy sustainability of your business.
- Achieving your targets or deciding to pay a buy-out fee to meet any shortfall in achieving them will enable receipt of discount until March 2025.
How it works
Alongside carrying out the eligible process mentioned above, the following criteria must be met too:
- 70% or more of total site energy is used on the eligible process as listed above.
- Adequate data and metering is in place to accurately record energy usage.
In return you will be required to complete a two year report at each target period, submitting energy and production data, to evaluate whether your business has become more energy efficient.
Meeting the target allows your business to continue claiming CCL relief until March 2025.
Complete your Data Return
At the end of each 2-year target period you must make a data return to the Environment Agency (EA) to prove your level of energy efficiency. Complete your Data Return for 2019 and 2020 now.
Find out how much you can save
Our online CCL calculator can help you determine how much CCL tax you are paying. Simply enter your annual consumption and see how much you could save by joining the NFU CCL scheme.
The future of the CCL scheme
While the current scheme has now been extended to March 2025, the Government's Department for Business, Energy and Industrial Strategy (BEIS) is currently considering options for the future. We'll update this page when further information becomes available.