The climate change levy (CCL) exemption scheme for renewables is now closed. March 2013 was the last month of generation for which a CHPQA accredited station was eligible to receive CHP levy exemption certificates (LECs), and July 2015 was the last month of generation eligible for renewable LECs. Please see our CCL exemption removed FAQs for more details.

Information for suppliers

Electricity utilities obtain LECs from generating stations with renewable or good-quality Combined Heat and Power (CHP) electricity. This supports CCL exempt supplies made to UK business customers under a renewable source contract or good-quality CHP source contract.

Once the customer has received CCL exempt supplies of electricity, the supplier must allocate/redeem LECs held in their supplier account on the Renewables and CHP Register.

Suppliers use this as part of the evidence to support the supply of CCL exempt electricity made to UK business customers for generation before 1 August 2015. HMRC ultimately determines whether the electricity supplied is CCL exempt. Full information on compliance is available on the HMRC website.

Parties that supplied CCL exempt renewable or good quality CHP electricity directly to a UK business customer through a private wire should contact HMRC for a ‘directed utility’ status.