Taxable Commodities – CCL Exemptions

Taxable Commodities - CCL Exemptions

CCL is applied to electricity, gas, liquid petroleum gas (LPG) and solid fuels. It is applied at the time of supply and is charged on the energy used. CCL is calculated based on the amount of energy being supplied and is charged by the supplier of the taxable commodity. Suppliers then pay the collected tax to HM Revenue and Customs. CCL is often shown as a separate line item on energy bills (usually above the VAT line) and is also VAT chargeable. It is charged at a flat rate on every kilowatt-hour (kWh) of energy used.
Taxable commodities (Electricity, Gas or LPG) used in certain supplies are able to claim CCL relief. These could include:
  • For use in metallurgical and mineralogical processes 
  • Not used as fuel i.e electricity used in electrolytic processes
  • Community heating schemes i.e a common boiler heating a block of flats
  • Not for burning or consumption in the UK i.e taxable commodities supplied to destinations outside the UK are entitled to relief from the main rates of CCL
  • Liquefied petroleum gas (LPG) and solid fuel for re-sale i.e Wholesalers and retailers of LPG in bulk and solid fuels
  • Used in some forms of transport i.e used for transport in the following categories:

    to propel a train, for example, to electrify train lines
    to propel a non-railway vehicle transporting passengers, for example, to power a ferry
    in a railway vehicle or non-railway vehicle transporting passengers, for example, to light a railway carriage
    in a railway vehicle transporting goods, for example, to light the cab interior of a freight train
    in a ship during a journey which is at any time outside territorial waters, for example, to light a marine freight vessel

Case Study: Manufacturer operating in the supplies of mineralogical processes
At one site, for example, in the last 4 years there was a total under-claimed relief of £72,858.46 with respect to the consumption of electricity, natural gas and LPG used in mineralogical processes alone.

2EA Consulting will carry out a survey to determine which supplies of taxable commodities the full rates of Climate Change Levy (CCL) do not apply, and the certification and other procedures that must be followed in order to claim the reliefs.


Standard Package

  • For domestic use, and for the non-business use of charities
  • Of small quantities of fuel and power
  • To community heating schemes
  • Not for burning or consumption in the UK
  • Of liquefied petroleum gas (LPG) and solid fuel for resale (subject to certification)
  • Used in some forms of transport (subject to certification)
  • Of taxable commodities to producers other than electricity producers (subject to certification)
  • To electricity producers (other than CHP, small generating stations and stand-by generating stations)
  • Of electricity by auto-generators or unlicensed electricity suppliers (excluding CHP) with a generating capacity of more than 2MWs
  • To/by small generating stations (other than CHP)
  • To stand-by generating stations
  • To CHP stations
  • Not used as fuel
  • Of electricity from renewable sources and from CHP stations
  • To customers who have Climate Change Agreements (CCAs)
  • For use metallurgical and mineralogical processes

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