A meaningful portion of every business energy bill is not payment for energy or network costs. It is a government policy levy. These charges fund renewable energy development and carbon reduction programmes and are passed through by suppliers at rates set by government.
The Climate Change Levy (CCL) is a tax on energy used by businesses, applying to electricity, natural gas, LPG and solid fuels. It is charged per unit of energy consumed and appears as a separate line item on your bill.
Businesses covered by a Climate Change Agreement receive fixed CCL discounts set separately for each fuel, 92% on electricity and 89% on gas. Energy used in certain processes, metallurgical and mineralogical for example, is exempt. Electricity generated on site from renewable sources and consumed on site is CCL exempt. If the exemption hasn't been claimed, you've been paying CCL you didn't owe.
Renewable Energy Guarantees of Origin (REGOs) are certificates issued for each MWh generated from eligible renewable sources. Suppliers use them to substantiate claims that their tariff is backed by renewable energy. Crucially, REGOs and the physical electricity are traded separately. Buying a REGO backed green tariff does not mean additional renewable generation is being built.
If you haven't reviewed your CCL position recently, particularly if your business has changed activity, operates energy intensive processes or has on site generation, it's worth doing so. Unclaimed exemptions are not retrospectively applied without a claim.