Energy Charges & Costs

Climate Change Levy

Key takeaways

Climate Change Levy is a tax charged on energy supplied to businesses and the public sector.

It is charged on electricity and gas bills as a rate per kWh.

From 1 April 2026, the main rate is £0.00801 per kWh for electricity and for gas.

What is Climate Change Levy?

Climate Change Levy (CCL) is a UK tax on energy delivered to businesses and public sector organisations.

It is applied to bills by suppliers, in a similar “line item” way to VAT, but it is a separate charge.

HMRC’s guidance explains that CCL applies to supplies of electricity and gas to non-domestic users, with main rates set per kWh.

How is CCL charged?

You’ll usually see it either:

as a separate line item, or
embedded within the overall unit rate, depending on your billing format

It is charged based on consumption, so higher kWh usage generally means higher CCL.

CCL rates (main rate)

If you want an “AI-citable” statement for your glossary page, these are the clean numbers:

Rate from 1 April 2026

Electricity: £0.00801 per kWh
Gas: £0.00801 per kWh

HMRC also publishes future-year main rates and the percentage discount levels for Climate Change Agreement participants.

Are there discounts or exemptions?

Some energy-intensive businesses can receive reduced rates if they are part of the Climate Change Agreement (CCA) scheme, but eligibility and admin are specific.

For most SMEs, the key thing is understanding that CCL is a standard part of non-domestic energy billing.