Businesses undertaking certain processes or using energy for qualifying purposes may be able to reduce or eliminate Climate Change Levy costs. ABGi can review your operations and energy use to identify potential CCL exemptions, reliefs and possible overpayments.
Are you paying more Climate Change Levy than you need to?
The Climate Change Levy is charged on electricity, gas and certain other energy supplied to UK businesses.
→ For many organisations it is simply accepted as another component of the energy bill.
→ But businesses undertaking particular processes or using energy for qualifying purposes can potentially reduce or eliminate their CCL liability.
The difficulty is knowing which parts of your operations qualify.
Depending on your activities and how energy is used, opportunities can include:
For energy used in qualifying processes involving products such as glass, ceramics, cement and bricks.
For qualifying metal production and processing activities.
Where energy is used for prescribed non-fuel purposes, including certain chemical processes and electrolysis.
Where energy performs both fuel and qualifying non-fuel functions.
For qualifying fuel used in electricity generation.
Specific treatment is available for qualifying CHP installations.
Certain rail, passenger and marine transport activities can also qualify.
Other opportunities may exist depending on the sector and operation.
Why CCL opportunities are easily missed
Eligibility often attaches to a process or use of energy, rather than to the business as a whole.
→ A manufacturing site might therefore have some energy consumption that qualifies for exemption and other consumption that remains subject to CCL.
→ Establishing the opportunity can require an understanding of the production process, identifying where energy is consumed and determining an appropriate basis for allocating consumption between qualifying and non-qualifying activities.
We assess your operations and energy use to identify potential exemptions and reliefs.
We examine the processes involved, energy consumption and supporting documentation.
We establish the qualifying energy consumption and estimate the potential financial benefit.
We help with the appropriate certifications and work with your energy supplier to implement the correct treatment.
Where appropriate, we can investigate whether CCL has previously been overpaid and whether a retrospective claim may be possible, subject to the relevant conditions and time limits.
We can help ensure the treatment remains appropriate as your operations and energy use change.
