quote
menu

Renewable energy loses Climate Change Levy (CCL) exemption


The recent budget confirmed the removal of the Climate Change Levy (CCL) exemption for renewable electricity. The implications for SMEs are significant.

The budget was marked by substantial cuts to government spending to move towards the aim of eliminating the deficit. While the reductions in benefits attracted the most attention, changes to the renewable energy market could have more impact on small to medium sized businesses.

Renewable sources of energy and the CCL

Renewable source electricity (RSE) will be liable for the Climate Change Levy (a tax on energy delivered to non-domestic users in the UK) after Levy Exemption Certificates (LECs) are dropped (although there is no timetable). Power generated by wind, solar or other sustainable sources will be more expensive, with the increases in price likely to be passed to business customers. You can find more of the detail in the official government document.

Some observers see this as a necessary reduction in expensive subsidies: the Chancellor said the removal of the exemption will earn the Treasury £450 million in 2015/16, rising to £910 million in 2020/21. But others complain that the move sets back the UK’s journey to becoming a low-carbon economy, especially as the government has been supportive of fracking and has lowered taxes on North Sea oil and gas.

RenewableUK, the trade association representing the wind, wave and tidal energy industries, is one of the critics. Its Director of Policy, Dr Gordon Edge, called it “a punitive measure for the clean energy sector” that undermines “vital financial support for renewable energy producers” and constitutes “another example of this Government’s unfair, illogical and obsessive attacks on renewables”.

“We’re suddenly looking at a substantial amount of lost income for clean energy companies which was totally unexpected,” Edge added. “Levy Exemption Certificates account for just over 6% on onshore wind generators’ revenues.”

Cheaper, greener business energy

While generators fret about projects slipping into unprofitability, there may be an unexpected silver lining for small to medium sized companies. As suppliers scramble to find customers for their renewable sourced electricity, there are eye-catching discounts on green energy, at least in the short term.

For SMEs looking to ‘go green’ there has never been a better time. Even those more motivated by price might be surprised by how much cheaper electricity rates have become. For a fast expert overview of your options just fill in the form at the top right of this page or call 0330 0100 251. You could be getting cheaper, greener energy in just 20 minutes.

Related Articles

DCP228 and Business Electricity

What is DCP228? DCP228 is a regulation to be introduced by Ofgem in April 2018 which will change the way busin...

Read More
energy news

DCP 161 – Excess Capacity Charges

If your business uses a Half Hourly (HH) meter for its energy supply, make sure you’re ready for DCP 161...

Read More
Scottish Power logo

Total Gas & Power

Total Gas & Power is a business energy supplier, wholly owned by Total SA. It has been a leading business ...

Read More
Excellent, 9.8 / 10

Mark W was really helpful and gave…

"Mark W was really helpful and gave excellent advice and customer focused service. Thanks you."

This review was posted by Adam on the 25th of April 2018

Really helpful

"Really helpful, clear advice from their assistant Bhavni, and an easy switch to a new electricity provider. Many thanks!"

This review was posted by Mrs Farley on the 25th of April 2018

Friendly, helpful staff

"Cheryl was really helpful and nothing was to much trouble as it took a few calls to finalise the switch to new supplier. Hope to save a few pounds with new provider."

This review was posted by Mary Southwell on the 23rd of April 2018

I had a really good experience with Ian…

"I had a really good experience with Ian Howell ext 2884 who works there. Great service, great price, recommended !"

This review was posted by Stephane vander elst on the 24th of April 2018

Fantastic service from Jess Purnell…

"Fantastic service from Jess Purnell today. Having used your very straightforward website I had an immediate phone call, Jess was very knowledgeable, professional and easy to deal with. She talked me through the options, explained the different elements of the quotes, and was able to secure me a good rate on a 2 year contract. Thank you"

This review was posted by Jackie Gilmore on the 24th of April 2018