Climate Change Levy (CCL) rates 2026/27: electricity and gas
The Climate Change Levy (CCL) rate from 1 April 2026 is 0.801p per kWh for electricity and 0.801p per kWh for gas. The rate from 1 April 2027 is 0.827p for electricity and 0.827p for gas.
CCL is a tax on energy supplied to businesses. Your supplier adds it to the bill per kWh. Some supplies shouldn't carry it at all, and bills that span 1 April need two rates. Work out your CCL with the calculator.
CCL rates table: p/kWh and £/MWh
| Rate from | Electricity p/kWh | Electricity £/MWh | Gas p/kWh | Gas £/MWh |
|---|---|---|---|---|
| 1 April 2027 | 0.827p | £8.27 | 0.827p | £8.27 |
| 1 April 2026 | 0.801p | £8.01 | 0.801p | £8.01 |
| 1 April 2025 | 0.775p | £7.75 | 0.775p | £7.75 |
| 1 April 2024 | 0.775p | £7.75 | 0.775p | £7.75 |
| 1 April 2023 | 0.775p | £7.75 | 0.672p | £6.72 |
£/MWh is p/kWh × 10. On a bill the Climate Change Levy line is usually in pence per kWh, and VAT is charged on top of it.
Climate Change Levy rates history
The table is every year we hold a GOV.UK record for, from 1 April 2023. The rates change on 1 April. We add a year only when GOV.UK publishes it: see Climate Change Levy rates (GOV.UK).
CCA discount on the CCL rate
Energy-intensive businesses with a climate change agreement (CCA) pay a reduced rate, which is the main rate less a percentage discount. Suppliers need the CCA certificate on file before they apply it.
| Rate from | Electricity | Gas |
|---|---|---|
| 1 April 2027 | 92% | 89% |
| 1 April 2026 | 92% | 89% |
| 1 April 2025 | 92% | 89% |
| 1 April 2024 | 92% | 89% |
| 1 April 2023 | 92% | 88% |
If you hold a CCA, check the bill shows the reduced rate. The CCL calculator has a CCA option.
CCL on bills that span 1 April
The rate depends on when the energy was supplied. A bill from 17 March to 16 April should charge the old rate for the March days and the new rate for the April days. A bill that applies the new rate to the whole period overcharges slightly; one that applies the old rate throughout undercharges, which may be corrected on a later bill. The calculator splits the kWh by days for you.
Gas CCL: charged on kWh, not cubic metres
Gas meters measure volume. Your supplier converts the volume to kWh using the calorific value and a standard correction factor, and charges CCL on the kWh figure. The kWh on the CCL line should match the kWh on the energy charge.
How to check Climate Change Levy on your bill
- Work out the average kWh a day for the billing period. If it is within the de minimis limit, there should normally be no CCL (see CCL exemptions).
- Otherwise, multiply the kWh by the rate for the dates. Split the period at 1 April if it spans it.
- If you hold a CCA, apply the discount.
- Compare with the CCL line on the bill. A difference of more than a few pence is worth raising.
CCL calculator, exemptions and VAT
- CCL calculator: work out the Climate Change Levy for your kWh and dates, with the working shown.
- CCL exemptions and reliefs: when CCL shouldn't be on the bill, and how to get it back.
- VAT on business electricity: small sites that are outside CCL are usually reduced-rate or zero-rate for VAT too.
CCL FAQ
What is the CCL rate for 2026?
From 1 April 2026 the main rate is 0.801p per kWh for electricity and 0.801p per kWh for gas (Climate Change Levy rates (GOV.UK)).
Is VAT charged on CCL?
Yes. HMRC's internal manual says VAT is chargeable on the CCL-inclusive value of a supply (HMRC internal manual VFUP5000: Climate change levy (CCL)), so VAT is added on top of the CCL at the rate that applies to the rest of the bill.
Who pays CCL?
Businesses and public-sector bodies that use electricity and gas. Suppliers charge it on the bill and account for it to HMRC. Energy-intensive businesses with a climate change agreement pay a reduced rate.
Is CCL charged on domestic supplies?
No. Domestic use and charity non-business use are excluded from the main rates (Excise Notice CCL1/3: Climate Change Levy reliefs and special treatments for taxable commodities), and so are small business supplies treated as domestic. See CCL exemptions.
Do I pay CCL if I have a climate change agreement?
You pay the reduced rate, not nothing: the main rate less the CCA discount in the table above, once your supplier holds your CCA certificate.
Sources: Climate Change Levy rates (GOV.UK); Excise Notice CCL1/3: Climate Change Levy reliefs and special treatments for taxable commodities; HMRC internal manual VFUP5000: Climate change levy (CCL).