Climate change levy
The climate change levy (CCL) is a UK tax charged per kWh on most business electricity and gas, collected through your supplier.
What it is
The climate change levy (CCL) is a tax on energy used by businesses and public bodies. Your supplier adds it to your bill and pays it to HMRC. It does not apply to ordinary household use.
Where you will see it
On your bill as a separate line, in pence per kWh, or built into the unit rate on some quotes. Check whether a quoted rate is "inclusive" or "exclusive" of CCL so you compare like with like.
Current rates
The main rate is the same for electricity and gas:
| Period | Main rate (p/kWh) |
|---|---|
| 1 April 2025 to 31 March 2026 | 0.775 |
| 1 April 2026 to 31 March 2027 | 0.801 |
| From 1 April 2027 | 0.827 |
Why it matters
It is a small but constant part of every kWh. Some businesses pay less: those with a climate change agreement get a discount, and some users are exempt or have only small quantities. See who is exempt from CCL.
Worked example
A shop uses 40,000 kWh of electricity in 2026-27: 40,000 × £0.00801 = £320.40 of CCL. If it also used 60,000 kWh of gas (5,000 kWh a month, above the 4,397 kWh monthly small-use limit): 60,000 × £0.00801 = £480.60. A site using only 12,000 kWh of gas a year (1,000 kWh a month) would normally fall under that limit and pay no CCL on its gas. VAT rules are covered in VAT and climate change levy.
Supplies below 1,000 kWh a month of electricity or 4,397 kWh a month of gas are treated as domestic and excluded, as is charity non-business use. Declare your use correctly to your supplier.
Related terms
See de minimis and the VAT and CCL calculator. Our page on how CCL affects your bill has more.
Common questions on this topic
Sources
General information only. Energy prices, rules and supplier terms change; check the latest position with your supplier, Ofgem or the Energy Ombudsman before you act.