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8 July 2015

Removal of CCL Exemption for Renewable Source Electricity (RSE)

Legislation will be included in the Finance Bill to remove the CCL exemption for RSE which is supplied to business or public sector consumers under the terms of a renewable source contract.

The exemption is being removed since the government considers that there are now more effective policies in place which target renewable generators more directly. It is also estimated that renewable generators overseas currently receive a total exemption benefit of £1.3billion, which does not contribute to the UK’s climate change or renewable energy targets.

The exemption will be removed from 1 August 2015, although there will be a transitional period during which suppliers will be able to continue to exempt RSE generated before that date if they hold sufficient renewable energy levy exemption certificates that relate to that electricity and use them against supplies made to eligible consumers.

 

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