Measure
The government will legislate in the Spring Finance Bill 2023 to raise the climate change levy (CCL) main rate on gas to £0.00775/kWh in 2024/25. The main rate of CCL applicable to electricity will be maintained at £0.00775/kWh for 2024/25 – the rate it has been since 1 April 2021.
The CCL main rate on solid fuels will rise to £0.06064/kg in 2024/25, whilst maintaining the CCL main rate on liquefied petroleum gas (LPG) at £0.02175/kg.
The percentage discount on the CCL main rates available through the climate change agreement scheme for 2024/25 will be held at the 2023/24 rates of 92% for electricity and 77% for LPG. The discounts for gas and solid fuels will be increased by RPI to 89%.
The government will maintain carbon price support (CPS) rates in Great Britain at a level equivalent to £18 per tonne of carbon dioxide in 2024/25. The government has also announced its intention to engage with industry and conduct a review of CPS beyond the announced rates.
Businesses that produce, supply or consume energy commodities falling within the scope of CCL and/or the CPS regime.
From 1 April 2024.
The increase to the main rate of CCL applicable to gas will enable the government to achieve its long-held intention of equalising the main rates applicable to electricity and gas by 2025. The other rate changes are broadly as expected and in line with previous years’ rate rises/freezes.