The Climate Change Levy

The Climate Change Levy is a UK taxation on the use of fossil fuels such as gas, coal and petrol. The levy applies to business' lighting heating and power consumption, when its source is any fossil fuel (from direct burning or indirectly through electricity). The tax was bought into effect in 2001, and the current rates stand at:

• 0.159/kWh for gas
• 1.242p/kg for coal
• 1.018/kg for liquefied petroleum gas (LPG)
• 0.456p/kWh for electricity

The aim of the tax is to encourage increased energy efficiency in UK businesses.