Please be aware that the government recently announced the removal of the climate change levy exemption for renewables. Please see our CCL exemption removed FAQs for more details.
The Climate Change Levy (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) enjoy tax exemptions.
We are responsible for administering the Climate Change Levy (CCL) Exemption for Renewables scheme on behalf of HM Revenue & Customs (HMRC). We administer a certification scheme which provides evidence for the administration of two of these 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.
The Northern Ireland Authority for Utility Regulation administers these exemptions for generation and supply made in Northern Ireland and the Republic of Ireland.
We review and accredit applications for generating stations via the Renewables and CHP Register. We then issue LECs (Levy Exemption Certificates) on the basis of the output data provided to us by generators.
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.
The CCL and REGO team regularly report to HMRC and DECC, as well as being responsible for the annual Fuel Mix Disclosure compliance deadline.
On this section of the website you can find information and documents relevant to you if you:
- are applying or intending to apply for accreditation of a renewable generating station under the CCL exemption for renewables scheme
- have obtained accreditation from CHPQA (Quality Assurance for Combined Heat and Power) for your CHP plant and wish to claim CHP LECs
- are the operator of an accredited generating station under either exemption and wish to claim Renewable or CHP LECs
- are acting as an agent appointed by the operator of a generating station
- are a supplier of CCL exempt electricity to UK business customers and wish to allocate/redeem LECs against supplies made.
If you have any questions relating to the CCL exemptions that you are not able to find the answer for in the relevant sections of our website or guidance documents, please contact the CCL and REGO team on 020 7901 7310 (Option 3) or CCLandREGO@ofgem.gov.uk.