Climate Change levy

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The Climate Change Levy (CCL) is designed to persuade businesses to cut their energy use or use energy from renewable sources.

It applies to:

• electricity
• natural gas as supplied by a gas utility

Commercial and industrial users of energy from these sources must pay the tax. Suppliers of these goods collect the tax. The tax does not apply to domestic users or charity usage for non-business purposes.

The tax is charged at an exact rate per unit of energy:

Electricity – 0.441 pence per kilowatt hour

Gas – 0.154 pence per kilowatt hour

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