Climate Change Levy Calculator
for UK Businesses
Calculate how much CCL could add to your business energy bills
The Climate Change Levy, often shown as CCL on business energy bills, is a government levy applied to many non-domestic electricity and gas supplies in the UK.
For most businesses, CCL is charged based on the amount of energy used, rather than being a fixed daily cost. This means the more electricity or gas your business uses, the more Climate Change Levy you are likely to pay.
Although the rate may look small when shown in pence per kWh, it can add up over the course of a year, especially for higher-usage businesses such as hotels, pubs, restaurants, care homes, manufacturers, farms, leisure sites and multi-site organisations.
Use our simple Climate Change Levy Calculator below to estimate how much CCL could be added to your annual business electricity and gas costs. Simply enter your annual usage in kWh and the calculator will show an estimated annual and monthly cost.
Calculate your Climate Change Levy (CCL)
Use this handy calculator to estimate how much Climate Change Levy could add to your annual and monthly business energy costs.
For most businesses, CCL is charged based on the amount of electricity and gas used. Depending on your supplier and contract structure, the charge may be shown separately on your bill or included within your overall unit rate.
Simply enter your annual electricity and/or gas usage to get an estimated annual and monthly CCL cost.
| CCL breakdown | Estimated annual cost |
|---|---|
| Electricity CCL | £0.00 |
| Gas CCL | £0.00 |
| Total estimated CCL | £0.00 |
This calculator is designed as a guide only. Climate Change Levy may be shown separately on your bill or included within your overall pricing, depending on your supplier and contract structure.
What is the Climate Change Levy?
The Climate Change Levy, usually shortened to CCL, is an environmental tax charged on certain supplies of energy to businesses and other non-domestic users in the UK.
It was introduced to encourage businesses to use energy more efficiently and reduce carbon emissions.
For most UK businesses, CCL is charged on each kilowatt hour of electricity or gas used. It may appear as a separate line on your bill, or it may be included within the overall unit rate, depending on the supplier and the structure of your contract.
Current Climate Change Levy rates
The main CCL rates for electricity and gas are set by the government and usually change from 1 April.
| Period | Electricity CCL rate | Gas CCL rate |
|---|---|---|
| 1 April 2025 to 31 March 2026 | 0.775p per kWh | 0.775p per kWh |
| 1 April 2026 to 31 March 2027 | 0.801p per kWh | 0.801p per kWh |
| From 1 April 2027 | 0.827p per kWh | 0.827p per kWh |
The figures above are based on the latest published GOV.UK Climate Change Levy rates.
How is Climate Change Levy calculated?
Climate Change Levy is calculated by multiplying your energy usage by the applicable CCL rate.
For example, if your business uses 50,000 kWh of electricity per year, and the CCL rate is 0.801p per kWh, the estimated annual CCL charge would be:
50,000 kWh x 0.801p = £400.50 per year
This is before VAT and before any other charges that may apply to your business energy bill.
Example CCL costs for UK businesses
The amount of Climate Change Levy you pay depends on how much electricity and gas your business uses.
| Annual usage | Estimated annual CCL at 0.801p/kWh | Estimated monthly equivalent |
|---|---|---|
| 10,000 kWh | £80.10 | £6.68 |
| 25,000 kWh | £200.25 | £16.69 |
| 50,000 kWh | £400.50 | £33.38 |
| 100,000 kWh | £801.00 | £66.75 |
| 250,000 kWh | £2,002.50 | £166.88 |
| 500,000 kWh | £4,005.00 | £333.75 |
Why does CCL appear on business energy bills?
CCL is one of several non-commodity charges that can affect your business energy costs.
Your overall energy bill is not just made up of the wholesale cost of electricity or gas. It can also include:
- standing charges
- network and distribution charges
- metering charges
- environmental levies
- government schemes
- VAT
- Climate Change Levy
This is why two businesses with similar unit rates can sometimes have very different overall bills, depending on how their contract is structured and what charges are included.
Do all businesses pay Climate Change Levy?
Not always.
CCL generally applies to business and non-domestic energy supplies, but some supplies may be exempt or charged differently.
For example, CCL may not apply to certain domestic supplies, some charitable non-business use, and some low-usage supplies. Businesses covered by a Climate Change Agreement may also qualify for reduced rates.
If you are unsure whether your business should be paying CCL, it is worth checking your bill, your supply type and your supplier’s treatment of the charge.
Why has the Climate Change Levy changed?
For many businesses, the increase may look relatively small on a pence-per-kWh basis. However, for higher-usage sites, small changes can still add up over the course of a year.
Is CCL included in my business energy quote?
This depends on the supplier and the way your quote is presented.
Some suppliers show CCL separately. Others may show a unit rate and then add CCL later on the bill. In some cases, a quote may focus on the headline unit rate and standing charge, while other third-party charges are shown separately in the terms.
This is one of the reasons it is important to compare business energy prices carefully and make sure you understand what is, and is not, included in the figures you have been given.
At WeSave, we help businesses compare energy prices clearly, so you can see the full picture rather than just the headline unit rate.
Climate Change Levy and VAT
CCL and VAT are separate charges.
CCL is calculated based on your eligible energy usage. VAT is then applied to your energy bill at the appropriate rate.
Most business energy supplies are charged VAT at 20%, although some supplies may qualify for the reduced 5% VAT rate depending on usage levels or the type of organisation.
If your business qualifies for reduced VAT or CCL exemption, you may need to complete the relevant supplier declaration form.
How can businesses reduce the impact of CCL?
You cannot usually negotiate the CCL rate itself, because it is set by the government.
However, you may be able to reduce the impact of CCL by reducing your overall energy consumption or making sure your business is on the right type of tariff.
Ways to reduce overall energy costs can include:
- reviewing your electricity and gas contracts before renewal
- comparing prices from multiple suppliers
- checking whether your contract includes separate pass-through charges
- reducing unnecessary energy usage
- reviewing half-hourly capacity charges, where applicable
- checking whether your business qualifies for reduced VAT or CCL treatment
- considering renewable energy or on-site generation where suitable
The CCL is only one part of your business energy bill, but understanding it can help you get a clearer view of your total costs.
Need help understanding your business energy bill?
Business energy bills can be difficult to compare, especially when suppliers present charges in different ways.
At WeSave, we help UK businesses compare electricity and gas prices clearly, including the charges that sit behind the headline unit rate.
Whether you are reviewing a renewal quote, comparing supplier prices or trying to understand the charges on your latest bill, we can help.
Alternatively, send us a recent business energy bill to hello@wesave.co.uk and we’ll review your options for free.
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Frequently asked questions about Climate Change Levy
CCL stands for Climate Change Levy. It is a government levy applied to many business and non-domestic energy supplies in the UK.
From 1 April 2026, the main rate of CCL on electricity is 0.801p per kWh. From 1 April 2027, this is due to increase to 0.827p per kWh.
From 1 April 2026, the main rate of CCL on gas is 0.801p per kWh. From 1 April 2027, this is due to increase to 0.827p per kWh.
No, CCL is not charged on domestic energy use. It applies to many business and non-domestic energy supplies.
Yes, many UK businesses pay CCL on their electricity and gas usage, although some exemptions and reduced rates may apply.
Only in certain circumstances. For example, some low-usage supplies, domestic use, charitable non-business use or businesses with specific agreements may qualify for exemption or reduced rates. If you believe CCL has been applied incorrectly, you should check with your supplier.
No. CCL and VAT are separate charges. CCL is based on eligible energy consumption, while VAT is applied to your energy bill at the relevant VAT rate.
Not automatically. Renewable electricity does not necessarily mean CCL is removed from your bill. The treatment depends on the supply, contract structure and current rules.
Some suppliers show CCL as a separate line so you can see the levy clearly. Others may include certain costs within the overall pricing structure. This is why it is important to compare business energy quotes carefully.
Yes. WeSave can review your business electricity or gas bill, explain the main charges and compare your current prices against the wider market.