CCL FAQ's
CCL Frequently Asked Questions
Why has CCL been introduced?
In an attempt to encourage people to save energy, to try to counter the effects of climate change.
Are all energy products subject to the CCL?
No, it is only a tax on some supplies of energy such as electricity, gas, liquefied petroleum gas, coke and similar products.
What energy products are not taxable commodities?
Products not subject to the CCL include petrol and diesel, household refuse, waste paper, sewage and landfill gas.
Why is the CCL applied to some energy products and not others?
Some energy products e.g. diesel or petrol are already subject to an Excise Duty whereas electricity, gas etc. are established energy products which are only subject to VAT, with most businesses recovering any VAT charged.
Who else levies it?
Most members of the EU have or are planning to have an "energy" or "carbon" tax.
How is the CCL calculated?
On the amount of energy being supplied.
How can businesses minimise their liability for the CCL?
Saving energy is a priority as the CCL is charged by the kWh. The lower the kWh usage of a company the lower the CCL it pays.
What are the rates?
Prices from 1st April 2008
| Electricity | 0.456 p/kWh |
| Natural Gas | 0.159 p/kWh |
| LPG | 1.018 p/kWh |
| Coal | 1.242 p/kWh |
What are the maximum (taxable) amounts?
Businesses that use not more than 33kWh per day of electricity and 145kWh of gas are exempt from the CCL.
Is there any support for energy efficiency measures?
You can obtain full details of the support scheme from the Department for Environment Transport and Regions free help line (0800 585 794), from the web site or by e-mail.
Can I claim CCL back like VAT?
No, but as it is only paid by businesses the Government is reducing the level of National Insurance Contribution, so overall there is no increase in taxation.
How will it look on my bill?
BizzEnergy is displaying CCL as a separate subtotal on your bill. This will enable you to tell the following:
- How much you are paying for CCL
- If you are exempt from CCL during the billing period.
Is the CCL due on domestic supplies?
No, if you pay 5% VAT on supplies you will not be liable.
Are charities liable for the CCL?
Only on the business aspects of their activities. Charities that only pay 5% VAT are not liable.