Parliamentary Search

Written question asked by James Naish (Labour) on Monday, 6 January 2025, in the House of Commons. It was due for an answer on Wednesday, 8 January 2025. It was answered by James Murray (Labour) on Thursday, 9 January 2025 on behalf of the Treasury.

Combined Heat and Power: Climate Change Levy

Question

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of changing the climate change levy exemption for natural gas combined heat and power.

Answer

The Climate Change Levy (CCL) is a tax on the supply of energy to businesses and the public sector, introduced in 2001 to encourage energy efficiency.

There are a number of CCL exemptions and reliefs, including for energy used by members of the Combined Heat & Power Quality Assurance (CHPQA) programme. Good CHP systems are the most energy efficient means of generating heat and power for many businesses and have more environmental benefits when compared to gas only generation. CHPQA was introduced to promote and reward best practice in CHP generation and members of the programme receive financial benefits, including tax relief on their CCL obligations.

As a tax, CCL policy is for the Chancellor and any representations will be considered as part of the tax policy making process. The Department for Energy Security and Net Zero are responsible for the CHPQA programme and will continue to review the objectives of programme in line with the missions and goals of the government.

Secondary information

Type
Written question
Reference
22118
Session
2024-26
Transferred
Yes
Subjects
Combined heat and power Climate change levy Exemptions
Link
View this Written question on www.parliament.uk