With the upcoming closure of the Carbon Reduction Commitment Energy Efficiency Scheme (known as the CRC), in April 2019, almost every business will see a significant increase in their energy costs. As the government loses revenue from one scheme, it was decided an increase in Climate Change Levy (CCL) rates would bridge the loss of revenue going forward.

Climate Change Agreement (CCA) holders will not be significantly impacted by these changes because CCL discount rates will increase in April 2019. This means businesses holding a CCA will only see an increase in energy costs in line with the Retail Price Index (RPI).

Since 1 April 2013, the discount on CCL has been 90% for electricity and 65% for other qualifying fuels. From 1 April 2019, the discount will increase to 93% for electricity and 78% for other fuels.

Furthermore, CCL scheme participants should ensure new PP10 and PP11 forms are completed at the start of April 2019 to maximise the increase to CCL relief rates. Both PP10 & PP11 forms can be found at www.gov.uk where they will need to be completed online, printed, signed and posted to the relevant organisation.