Climate Change Levy (CCL), All Change: “Short term hike & then fuel rebalancing”

The 1st April brings the introduction of the new higher rate of Climate Change Levy (CCL)

The cost is jumping up from 0.00583 £/kWh to the much higher 0.00847 £/kWh. The reason for the significant increase is the closure of the Carbon Reporting Commitment (CRC) scheme, these costs normally paid by CRC participants for their carbon allowances have been rolled into CCL from today.

However, this large increase is only the beginning of the proposed changes the government is making to CCL. From 1st April 2020 the rate for electricity will decrease and the gas rate will continue to increase. This is part of the government’s plan to rebalance the cost between gas and electricity. Other fuels, such as coal, will continue to align with the gas rate.


In addition, from today the government has increased the discount for those consumers eligible for CCL discounts. For electricity this is increasing to 93% and from 90% and for gas from 65% to 78%.