Climate Change Levy (CCL)
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CCL is a tax on the use of energy in industry, commerce and the public sector. It was introduced on 1st April 2001 to encourage businesses to become more energy efficient and reduce their greenhouse gas emissions. The following rates are levied for the 2010/11 tax year:
Electricity £0.0043 per kWh
Natural Gas £0.0015 per kWh
LPG £0.0096 per kWh
The CCL funds the Carbon Trust which provides advice and support for energy efficiency schemes and renewable sources of energy. To offset a general increase in the tax burden on industry because of the levy, employers' National Insurance was cut by 0.3%.
However, this means that businesses with few employees but high energy consumption are penalised. Therefore business such as pig farms have the periodic opportunity to join a Climate Change Agreement for their sector.