CCA – Climate Change Agreements and CCL…
What is CCL?
CCL stands for Climate Change Levy, it is applied by suppliers to electricity and gas bills in the UK.
You pay the main rates of CCL if your business is in one of the following sectors:
• public services
There are exceptions and relief for certain types of consumer, including but not limited to the below:
• business that use small amounts of energy as outlined by the HMRC here.
• domestic energy user.
• charity engaged in non-commercial activities.
HMRC provides a thorough list of exemptions here.
CCL rates update in April each year. The HMRC website lists historic, current and future CCL rates. It is important to note that there will be a big increase in CCL on 01-Apr-19.
What is a CCA?
CCA stands for Climate Change Agreement. This is a voluntary agreement made between various UK industry sectors (or underlying sites) and the Environment Agency to reduce energy use and carbon dioxide (CO2) emissions. In return, the holder of a CCA benefits with a discount to the amount of CCL owed. In essence, participation in a CCA is rewarded by reduced CCL charges.
As mentioned above, the HMRC is set to increase CCL charges on 01-Apr-19. In order to mitigate this increase, if you or your sector holds a CCA ,the percentage of usage that qualifies for CCL relief will also increase. The HMRC lists historic, current and future CCL percentage discounts for holders of a CCA.
If you qualify for CCL relief on the grounds of a CCA, please complete updated PP10 and PP11 forms to ensure you secure the maximum CCL relief that you are entitled to on 01/04/19. Return copies of both forms to your Direct Power account manager for submission to your supplier. Send the completed PP10 form to the HMRC as instructed on the form.
If you have any questions about the upcoming change to CCL for CCA holders relief get in touch with Direct Power today.