Removal of the Climate Change Levy (CCL) for renewable source electricity
In the recent budget, George Osborne, Chancellor of the Exchequer, announced the removal of the Climate Change Levy (CCL) exemption for renewable electricity.
The review includes the Climate Change Levy, Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and Climate Change Agreements (CCA).
As a result of this announcement, we’re now unable to provide any new CCL exempt rates.
We’re currently reviewing the implications of these changes.
More information on CCL
Renewable electricity has been exempt from the CCL since its introduction in 2001 - to improve industrial and commercial energy efficiency and so reduce greenhouse gas emissions. Since the exemption was introduced, more effective policies have been put in place to support renewable electricity generation.
Pending any changes that the Government makes, participants are still responsible for meeting their responsibilities under all schemes that they currently qualify for.
There’ll be a transitional period from 1 August 2015, during which electricity suppliers will be able to continue to exempt renewable electricity generated before that date. This will be permitted if they hold sufficient renewable levy exemption certificates (LECs). The length of this transition period will be discussed with regulators and affected businesses over the summer and autumn.
The official report is available to read online.
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Market summary for June:
Gas: A constrained supply picture saw UK gas prices rise slightly in June.
Power: The power market also rose, reflecting movements in the gas market.
Oil: The price direction resumed following the fundamentals of oversupply.
Carbon: Prices rose marginally amid optimism over reducing oversupply.
For a detailed look at the energy markets for the past month, download our full report today (1.8MB).
Regulatory update : what is P272?
P272 is an Ofgem change to the Balancing and Settlement Code. It aims to make settlement and billing more accurate. This change will affect an estimated 160,000 meters across the UK.
P272 impacts non half hourly (NHH) sites in Profile Classes 5 to 8 (also known as Maximum Demand sites).
By the 1 April 2017, all customers with a meter Profile Class 5 to 8, and an Advanced (AMR) meter installed, will need to be settled half hourly (HH).
Read more to check if your business is impacted and what you need to do to prepare.