UK Non-Commodity Charge · Energy Efficiency
Climate Change Levy (Electricity)
Current rates, who sets them, and where they are forecast to go.
What Climate Change Levy (Electricity)is, who sets the rate, what the revenue funds, and where it's heading. Sourced daily from the Purely Energy non-commodity cost data hub.
Climate Change Levy (Electricity): what it is, who charges it, and what it pays for
What it is
The Climate Change Levy (Electricity) charge in plain English
Government tax on gas used by businesses to incentivise energy efficiency. Domestic consumers are exempt. Since April 2024, gas CCL has been equalised with electricity CCL. HMRC publishes rates 2+ years ahead.
Introduced 2001 (Finance Act 2000). Gas rate equalised with electricity from April 2024.
Who charges it
The body that sets the rate
HMRC, announced in Budget. 2025-26: 0.775p/kWh, 2026-27: 0.801p/kWh, 2027-28: 0.827p/kWh
Unit
p/kWh
Applies to
UK business electricity
What it pays for
Where the revenue ends up
UK climate policy, general taxation revenue (Treasury)
Climate Change Levy (Electricity) FAQs
What is the Climate Change Levy (Electricity) charge?
Government tax on gas used by businesses to incentivise energy efficiency. Domestic consumers are exempt. Since April 2024, gas CCL has been equalised with electricity CCL. HMRC publishes rates 2+ years ahead.
Who sets the Climate Change Levy (Electricity) rate?
The Climate Change Levy (Electricity) rate is set by HMRC, announced in Budget. 2025-26: 0.775p/kWh, 2026-27: 0.801p/kWh, 2027-28: 0.827p/kWh.
What does Climate Change Levy (Electricity) pay for?
Climate Change Levy (Electricity) revenue supports UK climate policy, general taxation revenue (Treasury).
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Rate data sourced from the Purely Energy non-commodity cost data hub (dh.purelyenergy.co.uk). Published rates come from statutory publications by the body listed above. Forecasts are AI-generated from published guidance and market trends; treat P50 as a central estimate and reference P10/P90 for sensitivity.