Climate Change Levy (CCL) is an environmental tax applied to your commercial energy usage designed to encourage businesses to be more energy efficient.
The proportion of any bills charged at 5% VAT are exempt from CCL.
Large businesses could also be partially exempt from CCL if they hold a Climate Change Agreement (CCA). This is a voluntary arrangement made by UK Industry and The Environment Agency to reduce energy use and CO2 emissions. The CCL will be reduced by 90% on electricity bills and 65% on other fuels. To find out your eligibility please visit the HMRC website. If you do meet the criteria then a PP10 and PP11 will need to be completed and sent to the supplier.