Got a question? We’re here to help.
Rated Excellent on Trustpilot by over 1,000 UK business customers.
Some businesses may be exempt from paying climate change levy (CCL), here are some of the reasons:
- If your business consumption over a year is less than 12,000 kWh (electricity) or 52,728 kWh (gas).
- If you obtain your power from a renewable source or clean power that is produced from a combination of heat and power generators, this falls under CHPQA (the Combined Heat and Power Quality Assurance) programme.
- Public Transport services, those that have 0% VAT registration.
- Intensive energy users can enter into an agreement with the Government and each case is decided on a case by case basis. Businesses that qualify need to come to an agreement on energy saving targets. To apply for this you need to provide UGP the appropriate evidence or you will have to complete a PP11 certificate. You can obtain this certificate from HK Revenue & Customs at this link
For more information about electricity from renewable sources contact our Customer Services Team.
Today’s world is faced with many environmental challenges, and the UK Government has brought in the Climate Change Levy to help reduce the effects of Climate Change. This is an energy tax that applies to businesses in the UK who are consumers of more than 12,000 kWh (electricity) or 52,728 KWh (gas) per annum.
The purpose of this tax is to encourage businesses to be more energy efficient, to reduce their greenhouse gas emissions and it is expected to cut the annual carbon emissions by 2.5 million tonnes per annum.
| Taxable commodity | Rate from 1 April 2025 | Rate from 1 April 2026 |
| Electricity (£ per kilowatt hour (kWh)) | 0.00775 | 0.00801 |
| Gas (£ per kWh) | 0.00775 | 0.00801 |
This levy is collected by the supplier and is then paid directly to the Government. UGP does not collect any more than what is due to the government.
Why the renewable obligation appear on your energy bill?
The Renewable Obligation Scheme was set up by the government during 2002 to encourage and support the generation of electricity from renewable sources. This scheme means that all suppliers have to provide funds to generators of renewable energy. This is done through the purchase of Renewable Obligation Certificates (ROC) or with a contribution to the Renewable Obligation Buy-out fund.
