How to Claim Up to 92% Off Your Climate Change Levy
How to Claim Your Climate Change Levy Discount for 2026/27
If your business has a Climate Change Agreement, you could be paying up to 92% less in Climate Change Levy. But you need to submit your forms by 17 April 2026 or you'll pay the full rate.
You must submit your PP10 to HMRC and PP11 to your energy supplier before this date to get the discount applied to your bills from 1 April 2026.
What Is the Climate Change Levy?
The Climate Change Levy (CCL) is a government tax on energy used by UK businesses. It's charged on every kilowatt hour of gas and electricity you use, and it appears as a separate line on your energy bill. The idea is to encourage businesses to use less energy and reduce carbon emissions.
From 1 April 2026, the rate increases to 0.801p per kWh for both gas and electricity — up from 0.775p. That's a 3.4% rise. For a business using 500,000 kWh of gas a year, that's roughly £4,005 per year in CCL alone.
CCL Rates from April 2026
| Fuel | Full Rate | CCA Discount | You Pay (with CCA) |
|---|---|---|---|
| ⚡ Electricity | 0.801p/kWh | 92% off | 0.064p/kWh |
| 🔥 Gas | 0.801p/kWh | 89% off | 0.088p/kWh |
| 🔵 LPG | 2.175p/kg | 77% off | 0.500p/kg |
Source: GOV.UK — Climate Change Levy rates. Discount rates unchanged from 2025/26. See our full CCL rates breakdown for 2026/27 →
How Much Could You Save?
For energy-intensive businesses, these savings add up quickly. And with wholesale energy prices up 70%+ due to the Iran conflict, every line on your bill matters more than ever.
Who Can Claim the Discount?
The CCL discount is available to businesses that hold a Climate Change Agreement (CCA) with the Environment Agency. These are available to energy-intensive industries that commit to reducing their energy use and carbon emissions against agreed targets.
Eligible sectors typically include:
Over 8,400 UK facilities currently hold a CCA. A new phase of the scheme started in January 2026 and runs until March 2033. If your business is in an eligible sector and doesn't currently have a CCA, it's worth investigating — particularly with energy prices at the levels they are now.
How to Claim Your Discount — Step by Step
If you already hold a CCA, you need to submit two forms every year to keep your discount active. Here's what to do for 2026/27.
Submit PP10 to HMRC
The PP10 form tells HMRC you're eligible for the CCL reduction. You submit this directly to HMRC. It certifies that your facility holds a valid Climate Change Agreement.
Submit PP11 to your energy supplier
The PP11 form tells your energy supplier to apply the reduced CCL rate to your bills. You need to send this to each supplier you use — gas and electricity may be different suppliers.
⚠️ Important: Both forms must be submitted by 17 April 2026 to ensure the discount is applied from 1 April. If you miss the deadline, you'll pay the full CCL rate until the forms are processed. Reliefs can normally be backdated up to four years, but you'll need to provide evidence and it's a hassle — much easier to get it done before the deadline.
What If You Don't Have a CCA?
If your business isn't in one of the eligible energy-intensive sectors, you can't get a CCA. But there are still a few other ways to reduce your CCL liability.
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See our full CCL rates guide for 2026/27 →
