[Climate Change Levy]

The Climate Change Levy is an energy tax (electricity and gas). It was initiated on the 1^st of April 2001. It is payable by business energy users. These are all non domestic users namely:

    - Industry

    - Commerce

    - Public Sector (local authorities)

The level of tax for electricity is 0.43p/kWh. However users can be exempt if they switch their electricity supply to “green power”, (renewable generation excluding Hydro over 10MW). In order to qualify business energy users will have to provide ‘Levy Exemption Certificates’. These prove that:

    - The “green power” was produced by accredited UK generators

    - The generation took place. This is done through what is called a ‘Renewable Source               Declaration’

Exemption from the levy acts as an added incentive to use power generated from renewables.

Domestic energy consumers do not have to pay this tax.

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