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CCL rates will be increasing from April 2019

In the March 2016 budget we heard the announcement that the Carbon Reduction Commitment Energy Efficiency scheme (CRC) was to be scrapped at the end of the 2018-2019 compliance year and we would be moving to a single carbon tax based on the Climate change Levy (CCL) on our energy bills. The Government wants this change to be fiscally neutral so in order to compensate for the reduction in CRC revenue, the CCL rates will be increasing from April 2019.

For all CCL paying businesses the main rates will increase each year between now and April 2019, an overall increase of 52% for electricity and 74% for gas. The increase on gas is much larger because the government are also rebalancing the ratio of tax for electricity to gas, it is currently at 2:9:1 and is planned to become 1:1 by 2025. The future rates are set out in the table below:

From 1st April 2016 From 1st April 2017 From 1st April 2018 From 1st April 2019
Electricity
(£ per kWh)
0.00559 ↑2% 0.00568 ↑3% 0.00583 ↑45% 0.00847
Gas (£ per kWh) 0.00195 ↑2% 0.00198 ↑3% 0.00203 ↑67% 0.00339

 

For most businesses the only way to mitigate the effect on increasing CCL charges is to reduce the amount of energy you use. CCL is charged on a pence per unit basis so the less you use the less you pay. Act now to get a robust energy management plan in place, ensure you have access to all of your energy data and start reviewing it to see where savings can be made; simple behavioural change to reduce out of hours consumption typically saves up to 10% and even more can be saved with a little more investment in technologies.

Call us now and we can evaluate your bills to ensure you are paying the best rates possible.

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