Current Issues

Climate Change Levy

On the 1st April 2001, the government applied a ‘climate change levy’ to fuel bills.

The rates are currently:

• Electricity 0.43p/kWh
• Natural Gas 0.15p/kWh
• Coal 0.15p/kWh
• LPG 0.07p/kWh

Certain areas and sources of fuel are exempt (subject to conditions) from the tax.

Presently this applies to most renewable energy (wind, solar, biomass, wave, etc), CHP and energy intensive sources.

The key areas being:

• Fuel used in ‘good quality’ CHP schemes is exempt (subject to conditions).
• Electricity generated from renewable sources is exempt, although large scale Hydro does not qualify.
• Discounts of up to 80% are available for the ‘energy intensive sector’, subject to achieving government energy efficiency and EU emissions criteria.
• Enhanced Capital Allowances (ECA) are available on certain energy efficient measures such as lighting, boiler controls and shortly motor variable speed drives (VSD).

If you wish to discuss the implications the above may have on your company or organisation please do not hesitate to contact us, Kenneth Coombs.