Why do I have to pay Climate Change Levy?
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.
Currently the rate stands at 0.775p/kWh on Electricity and 0.465p/kWh on Gas. 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.
