CCL Rates Increasing in April 2026: Updated Business Energy Levy Guidance
Climate Change Levy Rates Increasing from April 2026
Two years of CCL increases confirmed for business energy
After two years of frozen rates, the Climate Change Levy on electricity and gas is rising from April 2026 – with a further increase already confirmed for April 2027. Here's exactly how much more your business will pay and what you can do about it.
The quick answer: CCL on electricity and gas has been frozen at £0.00775/kWh since April 2024. From 1 April 2026, both rise to £0.00801/kWh, and from 1 April 2027 to £0.00827/kWh. That's a combined 6.7% increase over two years. It's a pass-through charge — it applies regardless of your contract rate.
Key Takeaways
📋 What Is the Climate Change Levy?
The Climate Change Levy is a tax on energy supplied to businesses in the UK. It's designed to incentivise energy efficiency and reduce carbon emissions by making energy use more expensive. Your energy supplier is responsible for charging CCL on your bill, and it appears as a separate line item or is built into your unit rate depending on your contract type.
CCL applies to electricity, gas, LPG and other solid fuels. It does not apply to domestic consumers or charities using energy for non-business purposes. The levy has two components: the main rate(which all businesses pay) and the Carbon Price Support rate(which applies to electricity generators).
For most businesses, it's the main rate that matters — and that's what's changing from April 2026.
📊 CCL Main Rates: What's Changing
HMRC has confirmed the CCL main rates through to April 2027. After two years of frozen rates for electricity and gas, both commodities are seeing increases across two consecutive financial years.
| Taxable Commodity | Apr 2023 | Apr 2024 | Current | Apr 2026 | Apr 2027 |
|---|---|---|---|---|---|
| ⚡ Electricity (£/kWh) | £0.00775 | £0.00775 | £0.00775 | £0.00801 | £0.00827 |
| 🔥 Gas (£/kWh) | £0.00672 | £0.00775 | £0.00775 | £0.00801 | £0.00827 |
| 🛢️ LPG (£/kg) | £0.02175 | £0.02175 | £0.02175 | £0.02175 | £0.02175 |
| 🪨 Solid Fuels (£/kg) | £0.05258 | £0.06064 | £0.06064 | £0.06264 | £0.06468 |
🧮 CCL Cost Calculator
Enter your annual electricity and gas usage below to see exactly how much more you'll pay in Climate Change Levy from April 2026 and April 2027.
Your CCL Cost Breakdown
Want to see how CCL fits into your total energy costs? We'll break down every charge on your bill across 28+ suppliers.
Get a Transparent Quote💰 What This Means in Real Terms
The percentage increases might sound small, but CCL adds up across your total consumption.
Current: £193.75/yr. Apr 2026: £200.25(+£6.50). Apr 2027: £206.75(+£13). That's electricity alone — gas adds more.
Current: £1,162.50/yr. Apr 2026: £1,201.50(+£39). Apr 2027: £1,240.50(+£78). Significantly more with gas.
Current: £6,200/yr. Apr 2026: £6,408(+£208). Apr 2027: £6,616(+£416). At this scale, CCL becomes a genuine budget line.
CCL is charged per kWh consumed. The impact scales with usage. Energy efficiency measures reduce both your energy costs and your CCL liability.
⚖️ Gas and Electricity Rates: Now Equal
One important trend to understand is the equalisation of gas and electricity CCL rates. In April 2023, gas CCL was £0.00672/kWh while electricity was £0.00775 — a 15% gap.
From April 2024, gas was brought in line at £0.00775 — a 15.3% increase for gas users in a single year. The April 2026 and 2027 rates keep both fuels equal.
This means there's no longer a CCL advantage to being gas-heavy versus electricity-heavy. The decision between fuels should now be based purely on unit rates, efficiency and operational needs.
✅ Climate Change Agreement Discounts
Businesses that hold a Climate Change Agreement (CCA) with the Environment Agency receive substantial discounts on CCL rates. These discounts remain unchanged through to at least April 2027.
| Commodity | CCA Discount | Full Rate (2026) | CCA Rate (2026) | Full Rate (2027) | CCA Rate (2027) |
|---|---|---|---|---|---|
| ⚡ Electricity | 92% | £0.00801 | £0.000641 | £0.00827 | £0.000662 |
| 🔥 Gas | 89% | £0.00801 | £0.000881 | £0.00827 | £0.000910 |
| 🛢️ LPG | 77% | £0.02175 | £0.005003 | £0.02175 | £0.005003 |
| 🪨 Solid Fuels | 89% | £0.06264 | £0.006890 | £0.06468 | £0.007115 |
Got a CCA? Claim Your Discount Before 17 April
If your business holds a Climate Change Agreement, you need to submit your PP10 and PP11 forms before 17 April 2026 to get the reduced rate applied. We've written a step-by-step guide.
How to Claim Your CCL Discount →
Climate Change Agreements are available to energy-intensive industries that commit to reducing energy consumption and carbon emissions. They're typically available to manufacturing, food processing, chemicals, ceramics, glass and paper production. If your business operates in an eligible sector and doesn't currently hold a CCA, the savings can be substantial. Contact the Environment Agency for eligibility details. Already have a CCA? Here's how to claim your discount for 2026/27 →
🏭 Carbon Price Support: No Change
The Carbon Price Support (CPS) rates remain frozen at current levels until at least March 2028. Unchanged since April 2016.
£0.00331/kWh — frozen until March 2028.
£0.05280/kg — frozen until March 2028.
Most businesses don't pay CPS directly — it's charged to generators who may pass it through in wholesale electricity costs.
📅 Timeline: What's Coming and When
Gas rose 15.3% from £0.00672 to £0.00775/kWh, matching electricity.
Electricity and gas held at £0.00775/kWh. LPG frozen at £0.02175/kg.
Both electricity and gas rise to £0.00801/kWh. LPG remains frozen.
Both rise again to £0.00827/kWh. That's 6.7% above current rates in total.
The April 2026 CCL increase lands alongside several other cost pressures:
Nuclear RAB Levy — already appearing on bills since November 2025
Employer NI increases — adding to overall business cost pressures
National Living Wage rises — further squeezing operational budgets
📄 How CCL Appears on Your Energy Bill
CCL appears as a separate line on your invoice. You'll see the increase clearly from April 2026.
CCL is bundled into your p/kWh rate. On a fixed contract, your supplier absorbs the change. On pass-through, it adjusts.
When comparing quotes, always check whether CCL is included or excluded. A quote showing 28p/kWh including CCL isn't comparable to 27.2p/kWh excluding CCL. We always present transparent pricing so you can see exactly what you're paying.
🎯 What Your Business Should Do Now
Find out whether CCL is within your unit rate or shown separately. If it's pass-through, you'll see the increase from April 2026.
If your contract ends around April 2026, factor the CCL increase into budget planning. Get a transparent comparison to see where you stand.
CCL is charged per kWh. LED lighting, smart heating, insulation — they all cut both energy costs and CCL liability.
A CCA could save you 92% on electricity CCL and 89% on gas CCL. Already hold one? Submit your PP10 and PP11 forms by 17 April 2026. Read our step-by-step guide →
CCL is one element of your costs. With TNUoS increases and the Nuclear RAB Levy in play, a full energy review makes sense.
Understand Your Full Energy Costs
We'll show you a transparent breakdown of every cost on your bill — unit rates, CCL, standing charges, pass-through levies — and compare 28+ suppliers.
❓ Climate Change Levy FAQs
The Climate Change Levy (CCL) is a tax on energy supplied to businesses in the UK. It applies to electricity, gas, LPG and solid fuels. Your supplier charges it as part of your bill. Domestic consumers and charities using energy for non-business purposes are exempt.
From 1 April 2026, CCL on electricity rises from £0.00775 to £0.00801/kWh — an increase of 3.4%. Gas rises by the same amount. A further increase to £0.00827/kWh follows from April 2027. Over two years, CCL will have risen 6.7%.
Yes — if your business operates in an eligible energy-intensive sector, a Climate Change Agreement gives you 92% off electricity CCL and 89% off gas. Alternatively, reducing your energy consumption directly reduces your CCL costs since it's charged per kWh.
The broad CCL exemption for renewable-source electricity was removed in August 2015. Some renewable electricity under specific REGO-backed contracts may still qualify. Self-generated renewable electricity used on-site is generally exempt. Check with your supplier.
CCL is a regulated pass-through charge. On a fully fixed contract that includes CCL, your supplier absorbs rate changes during the contract term. On a pass-through contract, CCL adjustments flow through to your bill. Always check whether quotes include or exclude CCL.
The CPS is paid by electricity generators and CHP operators. The current gas rate is £0.00331/kWh, frozen since April 2016 until at least March 2028. Most businesses don't pay it directly, but it may be reflected in wholesale electricity costs.
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