Guidance

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 2018 Rate from 1 April 2019 Rate from 1 April 2020 Rate from 1 April 2021
Electricity (£ per kilowatt hour (KWh)) 0.00583 0.00847 0.00811 0.00775
Gas (£ per KWh) 0.00203 0.00339 0.00406 0.00465
LPG (£ per kilogram (kg)) 0.01304 0.02175 0.02175 0.02175
Any other taxable commodity (£ per kg) 0.01591 0.02653 0.03174 0.03640

Percentage discount for holders of a climate change agreement

Taxable commodity Rate from 1 April 2018 Rate from 1 April 2019 Rate from 1 April 2020 Rate from 1 April 2021
Electricity 90% 93% 92% 92%
Gas 65% 78% 81% 83%
LPG 65% 78% 77% 77%
Any other taxable commodity 65% 78% 81% 83%

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 2015 to 31 March 2016 0.00334 0.05307 1.56860
1 April 2016 to 31 March 2021 0.00331 0.05280 1.54790
Published 17 May 2016