Climate Change Levy rates
Find the latest Climate Change Levy and Carbon Price Support rates for energy providers.
Climate Change Levy
Climate Change Levy is paid at either, or both the:
- main levy rate
- Carbon Price Support rate
As a business energy supplier you’re responsible for charging the correct levy to your customers.
As an electricity generator you’re responsible for accounting and charging the correct Carbon Price Support rate.
The levy rate varies for each commodity:
- kilowatt-hours (kWh) for gas and electricity
- kilograms for all other taxable commodities
The rates do not apply to taxable commodities supplied to domestic consumers and charities for non-business use.
Reduced rates
There are reduced rates if you’re already in the climate change agreement scheme.
Main rates
| Taxable commodity | Rate from 1 April 2021 |
Rate from 1 April 2022 |
Rate from 1 April 2023 |
Rate from 1 April 2024 |
Rate from 1 April 2025 |
|---|---|---|---|---|---|
| Electricity (£ per kilowatt hour (kWh)) | 0.00775 | 0.00775 | 0.00775 | 0.00775 | 0.00775 |
| Gas (£ per kWh) | 0.00465 | 0.00568 | 0.00672 | 0.00775 | 0.00775 |
| LPG (£ per kilogram (kg)) | 0.02175 | 0.02175 | 0.02175 | 0.02175 | 0.02175 |
| Any other taxable commodity (£ per kg) | 0.03640 | 0.04449 | 0.05258 | 0.06064 | 0.06064 |
Percentage discount for holders of a climate change agreement
| Taxable commodity | Rate from 1 April 2021 | Rate from 1 April 2022 | Rate from 1 April 2023 | Rate from 1 April 2024 | Rate from 1 April 2025 |
|---|---|---|---|---|---|
| Electricity | 92% | 92% | 92% | 92% | 92% |
| Gas | 83% | 86% | 88% | 89% | 89% |
| LPG | 77% | 77% | 77% | 77% | 77% |
| Any other taxable commodity | 83% | 86% | 88% | 89% | 89% |
Carbon Price Support rates
If you own electricity generating stations or you’re an operator of combined heat and power stations, you pay Carbon Price Support rates.
You become liable for the Carbon Price Support rate when:
- gas passes through the meter at the generating station
- LPG, coal and other solid fossil fuels are delivered through the entrance gate at the generating station
When you submit your return you must declare the levy, including the Carbon Price Support rates of the levy, and keep normal commercial accounting records to prove your declarations.
| Carbon Price Support rate commodity | Gas | Petroleum gas or other gaseous hydrocarbon in a liquid state | Coal and other solid fossil fuels |
|---|---|---|---|
| Unit | £ per kilowatt hour (kWh) | £ per kilogram (kg) | £ per gigajoule (GJ) on gross calorific value (GCV) |
| 1 April 2016 to 31 March 2025 | 0.00331 | 0.05280 | 1.54790 |
Last updated 6 April 2024 + show all updates
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The rates from 1 April 2025 have been added and the rates for 1 April 2020 have been removed.
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The rates from 1 April 2024 have been added. The rates from 1 April 2015 to 31 March 2016 and the rates from 1 April 2019 have been removed.
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The rates from 1 April 2022 to 31 March 2023 and from 1 April 2023 to 31 March 2024 have been added, and the rates from 1 April 2018 to 31 March 2019 have been removed.
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First published.