The Climate Change Levy

The Climate Change Levy is a UK energy tax that has been in place since April 2001. The charges that will affect energy plant and boiler owners are as follows:

The above rates represent a substantial increase in fuel bills for gas and coal users. To offset this, the government is reducing National Insurance contributions by 0.3%. To find out whether you gain or lose, compare your NI savings with your energy bill levy charges.

From 1st April 2008 the following charges will apply:

What can you do to reduce the impact of the levy?

1. Improve the operating efficiency of your boiler plant.

2. Join an industry group

3. Take advantage of the governments Enhanced Capital Allowance Scheme (ECA)