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Climate Change Levy

Question for HM Treasury

UIN 69531, tabled on 28 March 2017

To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of recent changes to the climate change levy on the policy to move off-gas grid businesses away from oil, coal and other higher carbon fuels.

Answered on

3 April 2017

As announced at Budget 2016, the Government will rebalance the Climate Change Levy (CCL) rates between energy sources from 2019-20.

In 2019-20, the electricity to gas rates will move from a ratio of 2.9:1 to 2.5:1. Liquefied Petroleum Gas and other taxable fuel rates will be increased in proportion to the rate for gas. The Government intends to further rebalance the electricity to gas ratio to 1:1 by 2025.

This continues to ensure that the CCL encourages the efficient use of energy by businesses and reduces emissions by creating incentives to source electricity from renewable sources.

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