To pay a reduced main rate on CCL charges, energy-intensive businesses must enter into a climate change agreement (CCA) with the Environment Agency. A CCA is an intended agreement that plans to decrease energy use and CO2 emissions.
The trade-off means you’ll have to increase your business’ energy efficiency and reduce your average energy consumption. You’ll also have to calculate and report your business’ energy use and carbon dioxide emissions against targets over four two-year terms.
Businesses which agree to be bound by a CCA will receive a reduction of 90% in the CCL rate paid on electricity bills, and a 65% reduction on all other fuels. To find out if your business is entitled to sign up to a CCA, click here for more information.
If your business meets its targets at the end of each term, you will then continue to obtain the Climate Change Levy discount.
If you’ve overpaid on your Climate Change Levy, it’s possible to obtain a tax credit. Head to the Gov.uk page for more information as well as the necessary forms to submit.