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Friday, 29 May

April 2019 - Energy Tax To Rise By 65%

The Climate Change Levy

The Climate Change Levy and Renewables Obligation could see a 65% rise in energy tax this coming April. ThisWeekinFM has teamed up with UK Energy Management to provide some insight.

The Climate Change Levy (CCL) is designed to encourage businesses to reduce their energy consumption or to switch to renewable sources in order to benefit the environment.

The tax is on commercial energy usage. However, businesses with low energy consumption are exempt from paying this levy and are classed as ‘domestic consumers’ – this is calculated by using what is referred to as 'de-minimis' values. There are also other circumstances where some types of business are also excluded from paying this levy.

There is also the possibility of historical recovery of all or part of your company's CCL payments for the past four years if you qualify.


Taxable commodities

The taxable sources your business may use include electricity, natural gas, hydrocarbon gas (in a liquid state), petroleum, coal, lignite and coke - all of which the government wants to conserve the use of.

If you want to reduce or stop paying the levy, you need to start looking at using less of these taxable commodities. This could be by installing measures to make your site more efficient - such as changing your lighting and heating or by generating your own energy via solar or wind.

You should work with a reputable intermediary who can accurately review your requirements and assist you by recommending the right balance of traditional and renewable energy to meet your budget whilst showing you how your business can reduce energy consumption.


Time to act

In the 2016 budget, the Government announced changes to the main rates of the Climate Change Levy and in April 2017 the first changes came into place, followed by an increase in April 2018. There is another increase of 65% due from 1 April 2019. Now is the time to act.



What do I need to do?

The landscape in the energy industry is ever changing and tax and regulation is one of many factors to be considered. At UK Energy Management, you can benefit from our knowledge and experience within the energy sector, our team of professionals will guide you through all the options available to you.

t. 020 3893 8108

Picture: The Climate Change Levy is about to become a hot tax topic.

Article written by Bijal Bennett of UK Energy Management


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