When The Chancellor announced in his budget that the exemption from the Climate Change Levy, for renewable electricity, will cease from 1st August many business energy consumers were left wondering what would happen to their current energy contracts.

Suppliers have started to indicate what will happen to those types of contracts in letters soon to be sent out. In these they will be explaining that any renewable power customers will be starting to get charged CCL from the 1st August.

The majority will be advised that they now have the choice to move to a power from a mix of renewable and non-renewable sources - known as brown energy or to stay being supplied by renewable energy.

For Flex Purchasing businesses there are a few more options;

  • All flex customers who receive a LEC (Levy Exemption Certificate) will have to pay CCL from 1st August.

  • All flex customers that are currently paying CCL equivalent for renewable energy will continue to pay the same amount, however they will see CCL on their bill.

  • Customers paying CCL + a premium for having renewable energy will pay CCL, so here there will actually be a decrease in the overall energy charge. All customers on a LEC will have to pay CCL, so bills will change as per the above point).

In short, the change seems to be being managed well by suppliers.

Source: Npower