CCL stands for Climate Change Levy, and it’s a tax the UK government imposed on electricity, gas, coal, coal products and liquefied petroleum gas in the attempt to reduce the level of greenhouse emissions.
With the growing concern for climate change, businesses of every size are encouraged to use more eco-friendly sources of energy and this tax should act as a deterrent. However, not all the entrepreneurs are aware of how the CCL can affect their electric quote. Renewable energies are exempt from this law, but you may not be aware of the way the suppliers you are considering get hold of their energy. You may also want to make sure the company is not using CCL as an excuse to make more profit from themselves when they should only act as tax collectors on the behalf of Her Majesty’s Revenue and Customs (HMRC). This may happen, for instance, by charging you when there is an exemption (charitable and no-profit enterprises are an example of exemption, as are horticulture as intensive users) you may not be aware of, and you didn’t check with the Department of Energy and Climate Change (DECC).
It is always better to be informed about such matters before you take any decision about a commitment to a supplier. The ideal option is to ask a consultant for support in getting your energy quote from as many suppliers as possible and investigate them not only in the light of hidden expenses that will appear only in the small print of contracts, but also in the light of all the related issues that you may not think of when you ask for a business energy to find the most convenient price. Such issues are, however, really important as they can turn a low price into one a lot less convenient than you thought with expenditures you didn’t think of when making a prediction to base your judgment on.
Especially if this is your first business, you may not be aware of things like Climate Change Levy (CCL) that raise the price you pay compared to what you expected to pay. Households are exempt because they don’t pay the VAT. Costs that don’t profit the company such as taxes are not included in the deals, and the provider may take the knowledge of it for granted (whether genuinely or maliciously). Their business, in the end, is to sell their package and a law is not something they have any power on since you would pay such a tax with any provider. Consultants are knowledgeable of all that is a satellite to a business energy quote and can help you get more complete information, to allow you to make a more careful choice.