Your Ultimate Guide To Climate Change Levy

Companies, organizations, and even governments are concerned with energy consumption. Businesses are looking for solutions to bring down utility bills. Likewise, governments are encouraging businesses to adopt solutions that save energy. For instance, the government introduced the Climate Change Levy to help business reduce their energy consumption. CCL is an environment tax as well as a relief measure that helps businesses to realize cost-saving opportunities. So, what’s CCL? How can it help your business? Learn how to reduce your business water bill through CCL.

What’s CCL?

The Climate Change Levy (CCL) typically refers to an environmental tax imposed on a company’s energy use. Its objective is to encourage businesses to adopt environment-friendly measures in a bid to minimize the effects of climate change.

It’s often charged on taxable commodities such as electricity, gas, and petroleum. However, this doesn’t apply to road fuel as it’s subject to excise duty.

click here – Why do companies give corporate gifts?

Which Businesses Are Affected By CCL?

The Climate Change Levy is available in two forms: the main rate, as well as, the Carbon Price Support (CPS) rate.

Do you work in the public service sector or the commercial industry? If so, then you’ll pay the main rate. But if you operate your generating station, you’ll be charged the Carbon Price Support rate.

What Is The Application Procedure?

Every business owner must pay the Climate Change Levy. Nonetheless, the charge will be determined by your energy provider and automatically added to your monthly bill. The value will be listed as a separate item on your bill.

If you fail to pay the calculated amount, you’ll be charged a penalty of £250 for each ‘failure’.

How Can A Business Avoid CCL?

Some businesses aren’t charged with the Climate Change Levy. If you’re a charity business engaged in non-profitable activities, you’ll be exempted from paying the CCL fees. And if your business isn’t exempted, you might pay a reduced amount by implementing energy-efficient practices. The best way to achieve this is to sign the CCA (Climate Change Agreement).

Climate Change Agreement

A CCA is a voluntary agreement signed between the Environmental Agency and the UK Organization. It claims to minimize energy use, as well as, carbon dioxide emissions. When you enter this agreement, you’ll automatically receive a ninety-percent discount on your Climate Change Levy. You’ll also receive a sixty-five percent discount on other fuels.

However, it’s imperative to note that for you to become part of this agreement, you’ll need to improve your company’s energy efficiency. In addition, you must report your company’s energy use, as well as, carbon dioxide emissions over four two-year terms. As long as your business continues to meet its targets, you’ll keep receiving the CCL discount.

click here – What is a 12v power supply, and How is it Used

Making Businesses Energy Efficient

There are numerous ways through which you can make your business more energy efficient. Keep reading to find out:

LED Lighting

Utilize natural light whenever possible. But if it isn’t sufficient, consider installing LED lights. LED bulbs consume less energy and last longer than incandescent lighting. Plus, they produce minimal amounts of carbon dioxide.

Install Light Sensors

Install programmable thermostats and remote sensors in your home or office. This will ensure that electrical appliances and lights are automatically turned off when they aren’t in use.

Consider Switching Off Idle Office Equipment

Switch off all electronic equipment. Before leaving the office, make sure that you have turned off your laptops, photocopiers, microwaves, vending machines, and printers. Don’t forget to unplug your mobile phones when not in use.

Sleep Mode Activation

Make use of the energy-saving features. This will ensure that equipment automatically gets powered down when not in use. Activate the sleep mode to reduce energy consumption. Plus, you should avoid using screensavers unless it’s necessary.

Smart Meters

Install smart devices in your office. This will help you identify potential areas of energy loss. Even more, it’ll assist you to identify areas of improvement. It’ll also play a significant role in ensuring that your energy bills are accurate.

Turning Down Thermostat Can Work

Reduce your thermostat’s temperature. Lowering the temperature by only one degree can save you substantial amounts of money. It can significantly reduce your heating bills. Close your windows and doors whenever the heating is on. You may even want to consider utilizing an online energy comparison service to identify a cheaper tariff.

Natural Light

Leverage natural light in your office. Fold the blinds. Let natural light into your spaces. Remove tress around the windows. Trim branches that are blocking light into your spaces. Using natural lighting can save you energy and lower your utility bills.


Ensure that your office is properly insulated. Work on the windows. Check the doors. They should not allow air into or out of your spaces. Replace old windows with new ones. Go for double pane windows and doors. Seal cracks on the walls. Paint the walls from time to time to seal cracks and other openings.

Energy-Efficient Computers

Old model desktops consume more energy than energy-efficient modern computers. If you have the resources, bring in new computers. Preferably, choose laptops since they consume a negligible amount of power. Do the same to printers and other office equipment units. Doing this can help you cut up to 30 percent of your energy usage.

Maintenance Of HVAC Systems

Ensure that your heating and cooling system is functioning optimally. They should not produce any awkward noise. Check the wires. Ensure that there is no rust. Hire a professional electrician to repair your system. Also, schedule preventative maintenance from time to time. You can also replace an old system with a new one.

Work From Home Programs

The Covid-19 pandemic thought businesses valuable lessons: employees can work from home. Working from home saves energy. It reduces overhead costs. This is a flexible program that can improve the productivity of your employees.

The Bottom-Line

As a business, there are several measures you can adopt to cut down the cost of energy in your organization. One of those measures revolves around CCL. Designed to help you save energy, this tax relief will help your business become energy efficient and more sustainable. The above guide contains everything you should know regarding CCL.