Climate Change Levy (CCL) Rates Comparison – 1st April 2017 / 1st April 2019
- CCL – What you need to know
- CHP – what you need to know
- An Interview with Andrew Gardner
- CCL/CHPQA Management Packages
With the scrapping of the Carbon Reduction Commitment (CRC), the Government has decided to offset the loss in revenue to the Exchequer by increasing the rates of CCL with effect from the 1st April 2019. Below is a table that shows the current rates and the promulgated increases for the coming years:
| Taxable Commodity | Rate from 1st April 2017 | Rate from 1st April 2018 | Rate from 1st April 2019 |
|---|---|---|---|
| Electricity (£/kWh) | £0.00568 | £0.00583 | £0.00847 |
| Gas (£/kWh) | £0.00198 | £0.00203 | £0.00339 |
| LPG (£/kg) | £0.01272 | £0.01304 | £0.02175 |
For further clarity, let’s look at some example calculations to see the effect of these increases on a clients’ energy utility bills:
A hotel has the following monthly electricity and gas consumptions; using the current rates of CCL the charges will be as follows (1st Apr 2017 – 31st Mar 2018):
| Month | Electricity Consumption (kWh) | Gas Consumption (kWh) | CCL Payments (Electricity) | CCL Payments (Gas) |
|---|---|---|---|---|
| Apr-2017 | 222,349 | 749,185 | £1,262.94 | £1,483.39 |
| May-2017 | 223,206 | 696,228 | £1,267.81 | £1,378.53 |
| Jun-2017 | 231,470 | 342,740 | £1,314.75 | £678.63 |
| Jul-2017 | 277,963 | 596,266 | £1,578.83 | £1,180.61 |
| Aug-2017 | 241,461 | 646,292 | £1,371.50 | £1,279.66 |
| Sep-2017 | 207,404 | 662,041 | £1,178.05 | £1,310.84 |
| Oct-2017 | 215,727 | 784,759 | £1,225.33 | £1,553.82 |
| Nov-2017 | 222,250 | 925,662 | £1,262.38 | £1,832.81 |
| Dec-2017 | 223,307 | 597,832 | £1,268.38 | £1,183.71 |
| Jan-2018 | 228,556 | 941,555 | £1,298.20 | £1,864.28 |
| Feb-2018 | 228,556 | 857,180 | £1,137.07 | £1,697.22 |
| Mar-2018 | 228,556 | 862,402 | £1,194.07 | £1,707.56 |
| Totals | 2,704,105 | 8,662,142 | £15,359.32 |
£17,151.04 |
This gives a total CCL liability for the year of £32,510.36
Now let us see the effect on the CCL liability from the 1st April 2019 when there is a significant increase in the rates of CCL (Assuming that the hotels’ utility consumption remains the same):
| Month | Electricity Consumption (kWh) | Gas Consumption (kWh) | CCL Payments (Electricity) | CCL Payments (Gas) |
|---|---|---|---|---|
| Apr-2019 | 222,349 | 749,185 | £1,833.30 | £2,539.74 |
| May-2019 | 223,206 | 696,228 | £1,890.56 | £2,360.21 |
| Jun-2019 | 231,470 | 342,740 | £1,960.55 | £1,161.89 |
| Jul-2019 | 277,963 | 596,266 | £2,354.35 | £2,021.34 |
| Aug-2019 | 241,461 | 646,292 | £2,045.17 | £2,190.93 |
| Sep-2019 | 207,404 | 662,041 | £1,756.71 | £2,244.32 |
| Oct-2019 | 215,727 | 784,759 | £1,827.21 | £2,660.33 |
| Nov-2019 | 222,250 | 925,662 | £1,882.46 | £3,137.99 |
| Dec-2019 | 223,307 | 597,832 | £1,891.41 | £2,026.65 |
| Jan-2020 | 228,556 | 941,555 | £1,935.87 | £3,191.87 |
| Feb-2020 | 200,188 | 857,180 | £1,695.59 | £2,905.84 |
| Mar-2020 | 210,224 | 862,402 | £1,780.60 | £2,923.54 |
| Totals | 2,704,105 | 8,662,142 | £22,903.77 | £29,364.66 |
This gives a total CCL liability for the year of £52,268.43
This is an overall increase in CCL liability of approximately 61%. Considering that energy saving measures take at least 2 years to install; it has never been more important to look at ways of reducing your energy consumption.
