Climate levy change - reduced rate for energy intensive businesses
The measure
Energy intensive businesses which have entered into climate change agreements will see the discount they receive in the climate change levy reduce from 80% to 65%. The reduced rate of climate change levy will, therefore, increase from 20% to 35% and the amount of CCL payable will practically double.
Who will be affected?
Energy intensive businesses which have entered into a climate change agreement.
When?
1 April 2011
Our view
This could result in a significant increase in energy costs for affected businesses which have already undertaken to meet certain energy reduction targets and have invested accordingly. HM Treasury estimate that this measure will generate further revenues of £50m a year.
