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.
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.