About the scheme
The Climate Change Levy (CCL) exemption schemes for renewables and combined heat and power (CHP) are closed.
Levy exemption certificates (LECs), which were issued under these schemes, were only issued to electricity generated from CHP generators before 1 April 2013 and renewables generators before 1 August 2015. Transitional arrangements were in place until 1 April 2018 for a supplier to use these LECs to evidence the exemption.
Ofgem was responsible for administering the CCL exemptions for renewables and CHP in Great Britain on behalf of HM Revenue and Customs (HMRC) through a certification scheme. Under this scheme Ofgem issued LECs to eligible generators which were ultimately passed through to suppliers as the evidence needed to demonstrate to HMRC that electricity supplied to UK business customers is CCL exempt. It was then the final recipient of electricity supplied that could benefit from the tax exemption.
More information on the Climate Change Levy can be found on the HMRC website