Climate Change Levy (Registration and Miscellaneous Provisions) Regulations 2001

This levy was introduced in 2001 to reduce the volume of carbon being emitted by the UK and aid compliance with the requirements of the Kyoto climate change agreement. The rates of the levy are 0.15 p/kWh for gas and coal and 0.43 p/kWh for electricity, applicable to all business energy use. Part of this cost will be offset by a reduction in employers' national insurance contributions from 12.2% to 11.9%.

Certain energy intensive industries subject to Pollution Prevention Control (PPC) have been able to negotiate levy discounts of up to 80%. The same is also true for some smaller processes. For example, BFM Ltd operates a Climate Change Levy rebate scheme for the furniture manufacturing sector which enables companies to claim back up to 80% of the levy paid in respect of their coating operation energy use.