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UK Non-Commodity Charge · Auto-generated

CCL (Electricity)

Current rates, who sets them, and where they are forecast to go.

What CCL (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.

Roughly 5 to 8% of a typical UK business electricity bill

Current rate
0.8010p/kWh
FY2026+3.4% vs FY2025
Forecast
0.8270p/kWh
2027 · high confidence+3.2%
Share of bill
5 to 8%
Of a typical UK business bill
Set by
HMRC, announced in Budget, usually 2 years ahead
Applies to UK business electricity

CCL (Electricity): what it is, who charges it, and what it pays for

What it is

The CCL (Electricity) charge in plain English

Government tax on energy used by businesses to incentivise energy efficiency. Domestic consumers are exempt. Energy-intensive industries can claim reduced rates via CCAs.

Introduced 2001 (Finance Act 2000). Electricity and gas rates equalised from April 2025.

Who charges it

The body that sets the rate

HMRC, announced in Budget, usually 2 years ahead

Unit

p/kWh

Applies to

UK business electricity

What it pays for

Where the revenue ends up

UK climate policy, general taxation revenue (goes to Treasury)

Share of typical bill

5 to 8%

HMRC publishes CCL rates each Budget. At April 2026 rates, the levy contributes roughly 5 to 8% of a non-domestic electricity bill before any reduced-rate eligibility.

Published rate history

Financial yearRateYoY changeSource
FY20200.8110p/kWh-published
FY20210.7750p/kWh-4.4%published
FY20220.7750p/kWh0.0%published
FY20230.7750p/kWh0.0%published
FY20240.7750p/kWh0.0%published
FY20250.7750p/kWh0.0%published
FY20260.8010p/kWh+3.4%published
FY20270.8270p/kWh+3.2%published

Forecast trajectory

AI-assisted forecasts from our deep-research pipeline. P10, P50 and P90 are the 10th, 50th and 90th percentile outcomes; P50 is the central estimate.

YearP10P50P90ConfidenceRationale
2028-0.8535--
2029-0.8808--
2030-0.9090--
2031-0.8952--
2032-0.9131--
2033-0.9313--
2034-0.9500--

CCL (Electricity) FAQs

What is the CCL (Electricity) charge?

Government tax on energy used by businesses to incentivise energy efficiency. Domestic consumers are exempt. Energy-intensive industries can claim reduced rates via CCAs.

Who sets the CCL (Electricity) rate?

The CCL (Electricity) rate is set by HMRC, announced in Budget, usually 2 years ahead.

What does CCL (Electricity) pay for?

CCL (Electricity) revenue supports UK climate policy, general taxation revenue (goes to Treasury).

What is the current CCL (Electricity) rate?

For financial year 2026, the published CCL (Electricity) rate is 0.8010 p/kWh.

What is the CCL (Electricity) forecast?

Our latest forecast for 2027 is 0.8270 p/kWh (high confidence). Rate published by the setting body for the next FY.

Related charges in Auto-generated

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.