The new rates for the Climate Change Levy (CCL) – which will be effective from the 1st of April 2017 – have been announced by the UK government.
Changes, in particular increases, this year don’t look to be too significant, however the rates announced for 2018 and beyond could make a significant impact on businesses. It’s important for businesses to be able to plan ahead according to the rates, to include increases in future cost projections.
Here are the new rates effective from 1st April:
On the 1st of April CCL rates for electricity will increase by 1.6%. The new rates for 2017 / 18 will be 0.568 p/kWh, up from 0.559 p/kWh.
From the 1st of April CCL rates for gas will increase by 1.5%, with the new 2017 rate being 0.198 p/kWh.
Other taxable commodities
Other taxable commodities, such as coal, will increase by 1.6% to the new rate of 1.551 p/kg come the 1st of April 2017.
2018 and beyond
In April 2018, the rates will each increase by around 2.5% compared to 2017 / 18, however in 2019 there will be significant increases (45% for electricity, and 67%) for gas. This large increase was announced by George Osborne in his 2016 Budget and is designed to replace the revenue lost as a result of the scrapping of the Carbon Reduction Commitment (CRC) scheme.