Informal Consultation on the Removal of the CCL Renewables Exemption

Informal Consultation on the Removal of the CCL Renewables Exemption

  • 11 Aug 1

In the Government’s Summer Budget of 2015 it was announced that the Climate change Levy (CCL) exemption for supplies of renewable source electricity made to businesses and the public sector will be withdrawn from 1st August 2015. The Government agreed to consult with industry stakeholders to determine an appropriate length for the transitional period for the change and how the transitional arrangements will operate in practice.

The exemption applied to supplies of renewable source electricity made by electricity utilities to businesses and the public sector under a renewable source contract (a contract containing a renewable source declaration). The Budget changes mean that supplies of renewable source electricity that were generated on or after 1st August 2015 will no longer be eligible for the CCL exemption. This was provided for in the Summer Finance Bill 2015.

The Summer Budget announced that there will be a transitional period during which electricity utilities supplying renewable source electricity will be able to continue to make CCL exempt supplies of renewable source electricity that was generated before 1st August 2015 and redeem the levy exemption certificates (LECs) associated with that electricity.

Whilst the consultation is mainly focussed on the evaluation from utility suppliers, other interested parties are invited to share their views on the wider issue. Following the consultation, the Government will confirm the next steps regarding the transitional arrangements and the timescales for the complete withdrawal of the exemption. No decision has yet been taken on the precise date for this however the final withdrawal will require further legislative changes to be made in Finance Bill 2016.

The consultation asks the following questions:

  • Is there anything you would like the Government to consider in relation to the transitional arrangements for removing the CCL exemption for electricity generated from renewable sources?
  • Do you have any concerns on any other issues in relation to the removal of the exemption?

We value your views on the above – please email your responses to compliance@carbon2018.com or call Melanie Kendall-Reid on 01252 878722 to discuss this further. The deadline for submitting responses is 31st October 2015.


One Comment

  1. Government Consultations: Last Chance to Share Your Views! - Energy Legislation Hub 26th October 2015 at 5:29 pm

    […] 1. HMRC is undertaking an informal consultation onthe Transitional Arrangements for Removing the Climate Change Levy (CCL) Renewables Exemption after which CCL will be added to renewable electricity bills. The Government is trying to determine an appropriate length for this transitional period and how the transitional arrangements will operate in practice. With feedback on consultation due 31st October 2015,it is clear the transitional period will not come to an end until after this date but this could happen very soon after.  In addition, overall opinions are being sought on the scrapping of the CCL exemption for renewable supplies – this is your chance to air your views! More details can be found here:  http://www.energylegislation.co.uk/informal-consultation-on-the-removal-of-the-ccl-renewables-exempt… […]

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