The Climate Change Levy explained
The Climate Change Levy is a government tax on the energy your business uses. It is added to most commercial gas and electricity bills, and many businesses do not know it is there or whether they are paying the right amount.
What the levy is
The Climate Change Levy, or CCL, is a tax on gas, electricity and some other fuels used by business and the public sector. It is designed to encourage energy efficiency. Your supplier collects it and adds it to your bill as a separate line, charged per unit of energy and applied before VAT, so you effectively pay tax on the tax.
For the year from April 2026 the main rate is set at £0.00801 for each unit of electricity and £0.00801 for each unit of gas, which is about 0.8p a unit on each. The government sets these rates and reviews them every April, so they change over time.
Rates are set by government and updated annually. The figures above are the published main rates for 2026 to 2027 and may change in future years.
Who pays and who does not
Most businesses pay
Commercial and public sector energy users pay the main rate on their gas and electricity.
Some are exempt
Domestic users, charities in non commercial use and very small users below set thresholds do not pay it.
Reduced with an agreement
Businesses with a Climate Change Agreement pay a small fraction of the main rate on qualifying energy.
How OptiFlow Watch helps
We check it is right
Watch reads your bills and confirms the levy is applied correctly, and that you are not being charged where an exemption or reduced rate should apply.
We flag what you can claim
If you may qualify for an exemption or a reduced rate, we point it out so you can act on it.
We cut the energy it sits on
The levy is charged per unit, so getting you onto a better deal and using less trims the tax too.
Guaranteed saving
For a flat £49.99 a month, we guarantee a saving against your real bills or it is not worth your while.
More from OptiFlow Watch
Make sure every charge on your bill is right
OptiFlow Watch reads your bills, checks the levy and every other line, and guarantees a saving, for £49.99 a month.