the Climate Change Levy and LECs

The Climate Change Levy (CCL) is a tax on energy used by non-domestic consumers. Suppliers add the charge to the bills of commercial users with the money generated used by government to fund energy saving measures.

what is a Levy Exemption Certificate (LEC)?

Electricity produced from designated renewable sources is exempt from the CCL and is entitled to Levy Exemption Certificates (LECs) which can be bundled with the power when sold to a supplier.

Those consumers not subject to Climate Change Agreements can purchase renewable power and benefit from the associated levy exemption.

LECs are issued monthly in electronic form to accredited generating stations for each megawatt hour (MWh) of electricity generated. Before it can receive LECs, a generating station must apply to Ofgem for accredited status.

> Find out more from Ofgem about LECs.