About the Climate Change Levy exemption

The Climate Change Levy (CCL) Exemption is now closed for renewables. Renewable electricity generated from 1 August 2015 will not be eligible to receive Levy Exemption Certificates (LECs). If you commissioned on or after this date you should not apply. Please see our CCL exemption removed FAQs for more details.

About the scheme

The CCL is a tax on UK business energy use, charged at the time of supply. Energy use refers to electricity, gas, liquid petroleum gas and solid fuel. The final recipient of supplies of electricity generated from certain renewable sources and combined heat and power (CHP) can obtain a tax exemption for generation before 1 August 2015.

Ofgem's role

We’re responsible for administering the CCL exemption for renewables on behalf of HM Revenue & Customs (HMRC). We administer a certification scheme which provides evidence for the administration of two tax exemptions:

  • the exemption for renewable source electricity with effect from April 2001
  • the exemption for indirect supplies of good quality combined heat and power (CHP) electricity with effect from April 2003.

LECs provide suppliers with some of the evidence needed to demonstrate to HMRC that electricity supplied to UK business customers is CCL exempt. The final customer realises the exemption from the tax. The tax rate for electricity is set within the Finance Bill each year as part of the Budget. This information is also published on the HMRC website.

Arrangements for Ireland and Northern Ireland

The Northern Ireland Authority for Utility Regulation administers the exemptions for generation and supply made in Northern Ireland and the Republic of Ireland.

Still need help?

If you have any questions relating to the CCL exemptions that you’re not able to find the answer to on this site, please contact the CCL and REGO team on 020 7901 7310 (Option 3) or CCLandREGO@ofgem.gov.uk.

Publications and updates

  • Published: 12th Jan 2016
  • Decisions
  • 1 Associated documents
This document details our decision on market coupling and Levy Exemption Certificates, following our consultation and calls for evidence.

  • Published: 7th Oct 2015
  • Guidance
  • 1 Associated documents
This revised FAQ provides detail about the impact of the removal of the Climate Change Levy exemption for renewable electricity for administration of all the schemes that use Levy Exemption Certificates (LECs).

  • Published: 26th Mar 2013
  • Other
  • 1 Associated documents
This document outlines the reasons for the closure of the CHP LEC scheme and Ofgem's role in facilitating the closure.

  • Published: 31st May 2012
  • Open letters and correspondence
  • 2 Associated documents
This is the Community Heat and Power Levy Exemption Certificate Reconciliation Letter sent to all CHP LEC account holders in May 2012.

  • Published: 23rd Mar 2012
  • Other
  • 1 Associated documents
This is the Renewables Obligation and Levy Exemption Certificates schedule for 2012/2013.

  • Published: 13th May 2011
  • Open letters and correspondence
  • 2 Associated documents
This is the Community Heat and Power Levy Exemption Certificate Reconciliation Letter sent to all CHP LEC account holders in May 2011.

  • Published: 25th Jan 2011
  • Other
  • 1 Associated documents
Good Quality Combined Heat and Power Levy Exemption Certificate Issue - 2011-2012.

  • Published: 21st Jun 2010
  • Open letters and correspondence
  • 2 Associated documents
This is the CHP LEC Reconciliation Letter - June 2010.

  • Published: 26th Mar 2010
  • Other
  • 1 Associated documents
This is the schedule for the 2010/2011 Good Quality Combined Heat and Power Levy Exemption Certificate Issue Schedule 2010/11.

  • Published: 26th Mar 2010
  • Other
  • 1 Associated documents
See the Renewable Obligation and Levy Exemption Certificates schedule for 2010/2011.

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