Climate Change Levy changes questions

Climate Change Levy changes - frequently asked questions

What is changing?

On 8th July 2015, the Government announced its 2015 Summer Budget. This budget removed Climate Change Levy (CCL) exemption for renewably sourced energy supplied to businesses.

What is the Climate Change Levy Exemption?

Renewable electricity supplied to businesses under renewably sourced energy contracts has been exempt from the CCL since its introduction in 2001. This change means that businesses who are party to renewable sourced energy contracts will now be responsible for the paying of the CCL.

Why do I have to pay Climate Change Levy?

The CCL was introduced in 2001 to improve industrial and commercial energy efficiency and so reduce greenhouse gas emissions. It is a UK-wide tax on the supply of energy to businesses and bodies in the public sector, with separate rates for electricity, gas, solid fuels and liquefied gases depending on their energy content.

Who is likely to be affected?

Any ScottishPower customer who is currently on a supply contract which includes renewable sourced energy. All customers on these contracts that are affected by this change will receive a letter from us.

What does it mean for my business?

It means that on 1st August 2015, your renewable premium will be charged at the prevailing CCL rate, currently 0.554 pence per kWh (excluding VAT). This will only continue until the end of the transitional period, the length of which will be determined by the Government.

When does this change happen?

The change came into effect on 1st August 2015 and you will see the changes to your charges on your bills from this date.

What happens when the transition period ends?

Once the transition period is over the renewable premium will be removed and customers will be required to pay the full published CCL charge.

Do I need to do anything on behalf of my business?

No. Your contract will continue until your next renewal date as previously agreed. However, should you wish to move onto a non-renewable contract or discuss your account further please contact your Account Manager or contact us on 0800 074 0052 within 10 working days.