Country:United Kingdom
Policy status:In Force
Date Effective:2001
Policy Type:Economic Instruments>Fiscal/financial incentives
Policy Target:Energy Utilities, Industry
Agency:Her Majestys Customs and Excise, Department for environment, food and rural affairs (Defra), Department for Business, Energy and Industrial Strategy

The Climate Change Levy (CCL) was introduced by the UK Government in 2001 and is charged on most non-domestic supplies of energy used as fuel for lighting, heating and power. The CCL is designed to promote energy efficiency and encourage investment in energy saving equipment, thereby reducing emissions of greenhouse gases.

CHP schemes that are fully or partially certified as “Good Quality CHP” under the CHPQA programme and have obtained a Secretary of State (CHP) Exemption Certificate are exempt:

  • From the CCL on the fuel they utilise (assuming they meet a power efficiency threshold of 20% otherwise this exemption is scaled back) 
  • On the qualifying power output (QPO) generated. 

For exporting schemes, a CHP Levy Exemption Certificate (LEC) certifies each Megawatt hour (MWh) of QPO electricity produced and, for indirect supplies, should be transferred with the QPO to the third party electricity supplier.


25 Energy Efficiency Recommendations Applied:Industry, High-efficiency industrial equipment and systems
Related policies:Climate Change Levy

Last modified: Wed, 28 Sep 2016 11:06:53 CEST