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Climate Change Levy Checker

Are you paying a levy you don't owe?

The Climate Change Levy (CCL) is a government tax on the energy businesses use. Small users, homes, care homes and a charity's free activities shouldn't pay it, and energy-intensive businesses can pay far less. If that's you and your bill still charges it in full, you're paying too much every month.

Send us a bill and we'll check it for you. Or answer a few quick questions and see straight away if you could pay less. Checking the VAT instead? Use our business energy VAT checker.

How would you like to check?

The levy you might not owe

From 1 April 2026 the levy is £0.00801 per kWh (0.801p) for electricity and gas. From 1 April 2027 it's £0.00827 per kWh. You'll see it on your bill. These are HMRC's rates, as of October 2026.

A small supply, a home or a charity's non-business use shouldn't have a levy line at all. These also pay the lower rate of VAT. If your bill charges the levy, you're paying a tax you shouldn't be, on every bill.

Ways to pay less levy

  • A climate change agreement: Energy-intensive businesses that agree targets with the Environment Agency pay 92% less levy on electricity and 89% less on gas. Your trade association can tell you if you can join.
  • Mineral and metal processes: Energy used to make glass, ceramics, bricks, cement or lime, or to work metals, hasn't paid the levy since 1 April 2014.
  • Making your own power: Solar panels, a wind turbine or combined heat and power mean you buy fewer units, so there's less levy on your bill.

A green tariff won't cut it. Renewable electricity from a supplier has paid the levy since 1 August 2015. A carbon reduction plan won't cut it either.

Whatever fits you, your supplier needs the right certificate before your bill changes. We'll help you get it right, chase any refund and check every bill after.

Questions people ask

Who pays the Climate Change Levy?

Businesses in industry, commerce, farming and public services. From 1 April 2026 it's £0.00801 per kWh for electricity and gas, rising to £0.00827 per kWh from 1 April 2027.

Who shouldn't be paying it?

Small users (on average no more than 33 kWh of electricity or 145 kWh of gas a day), homes and other places people live, and a charity's free activities. Energy used in mineral and metal processes doesn't pay it either. If your bill has a levy line and one of these fits you, you could be owed money back.

How can I pay less levy?

With a climate change agreement. Energy-intensive businesses agree targets with the Environment Agency and pay 92% less levy on electricity and 89% less on gas. Your trade association can tell you if you can join. Your supplier needs the right certificate before your bill changes.

Does green electricity or a carbon reduction plan cut the levy?

No. Renewable electricity from a supplier has paid the levy since 1 August 2015, so a green tariff is charged the same as any other. A carbon reduction plan doesn't cut it either. Making your own power does help, because you buy fewer units.

Can I get an overpaid levy back?

Often, yes. With the right certificate, you can claim back levy you shouldn't have paid for up to four years. We'll check your bills and take it up with your supplier for you.

No pressure, just a straightforward check from people who know what to look for. Call us on 01273 914000.

Words we use on this page

CCL (Climate Change Levy)
A tax on the electricity and gas businesses use, charged per kWh and shown on your bill. From 1 April 2026 it's 0.801p per kWh, and 0.827p from 1 April 2027. Homes, a charity's non-business use and small supplies don't pay it. Source: HMRC, Climate Change Levy rates
Small supply (de minimis)
A supply small enough to get the 5% rate even for a business: on average no more than 33 kWh a day (1,000 kWh a month) of electricity, or 145 kWh a day (4,397 kWh a month) of gas, at one site. Small supplies don't pay the Climate Change Levy either. Source: HMRC, Fuel and power (VAT Notice 701/19)
Non-business use
Activities a charity doesn't charge for. Energy used for them gets the lower rate of VAT and doesn't pay the Climate Change Levy. Activities the charity charges for are business use. Source: HMRC, Fuel and power (VAT Notice 701/19)
Residential accommodation
Houses and flats, care homes, children's homes, hospices, student halls, caravans, houseboats and self-catering holiday lets all count. Hotels, hospitals and prisons don't. Source: HMRC, Fuel and power (VAT Notice 701/19)
Climate change agreement (CCA)
An agreement an energy-intensive business makes with the Environment Agency to use less energy. In return it pays much less levy: 92% less on electricity and 89% less on gas. Source: HMRC, Climate Change Levy rates
Mineral and metal processes
Making things like glass, ceramics, bricks, cement and lime, and working metals. Energy used in these processes hasn't paid the levy since 1 April 2014, once your supplier has the right certificate. Source: HMRC, Climate Change Levy reliefs (Excise Notice CCL1/3)
VAT (value added tax)
A tax on most goods and services, energy included. On business energy it's 20%, 5% or 0%, depending on how much you use and what you use it for. Source: GOV.UK, VAT rates
Reduced rate
The lower rate of VAT, 5%. Energy gets it when it's a small supply or goes to a qualifying use, such as homes or a charity's free activities. Gas, and electricity in Northern Ireland, are charged 5% for these. Source: HMRC, Fuel and power (VAT Notice 701/19)
VAT certificate
A signed form you give your supplier saying what percentage of the energy at a site goes to a qualifying use. You need one for each site. Your supplier has to check it, so they may ask for your workings. Getting it wrong can mean a penalty. Source: HMRC, Fuel and power (VAT Notice 701/19)
EAC (Estimated Annual Consumption)
The electricity industry's estimate of how many kWh your meter uses in a year, used in settlement until real readings replace it. It's often on your bill or contract. Source: Elexon glossary, estimated annual consumption
kWh (kilowatt-hour)
The unit electricity is billed in: using 1 kilowatt of power for one hour. A 2 kW heater left on for an hour uses 2 kWh.

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