GLEG UK Energy Market Update 08-06-26…
June 8, 2026GLEG UK Energy Market Update 15-06-26…
June 15, 2026
The Climate Change Levy (CCL) increased in April 2026, but many businesses may not realise that a further increase has already been confirmed for April 2027.
While the levy is only one component of an energy bill, it forms part of a growing range of policy and non-commodity costs that can have a significant impact on overall energy spend, particularly for larger energy users.
What Is the Climate Change Levy?
The Climate Change Levy is a government tax applied to most non-domestic electricity and gas consumption. It is designed to encourage businesses to improve energy efficiency and reduce carbon emissions.
Since April 2026, businesses have been paying the updated rate of £0.00801/kWh, with a further increase to £0.00827/kWh due from April 2027. For organisations with high energy consumption, even relatively small increases can quickly add up across a portfolio of sites.
Electricity
| Consumption | CCL Discount | Annual Savings |
| 1,000,000 kWh | 92% | £7,369 |
| 5,000,000 kWh | 92% | £36,846 |
| 10,000,000 kWh | 92% | £73,692 |
Gas
| Consumption | CCL Discount | Annual Savings |
| 1,000,000 kWh | 89% | £7,129 |
| 5,000,000 kWh | 89% | £35,645 |
| 10,000,000 kWh | 89% | £71,289 |
What Should Businesses Be Reviewing?
With another increase on the horizon, now is a good time to review your energy strategy and ensure you’re not paying more than necessary.
Businesses should consider:
• Whether the correct CCL rates are being applied to invoices
• Eligibility for Climate Change Agreement (CCA) discounts
• Opportunities to improve energy efficiency and reduce consumption
• Whether current procurement arrangements remain fit for purpose
Many qualifying businesses can benefit from substantial CCL discounts, yet these are often overlooked or not reviewed regularly.
Looking Beyond Energy Prices
As energy markets continue to evolve, managing energy costs is about much more than securing a competitive unit rate.
Policy costs, compliance requirements, sustainability objectives and carbon reduction strategies all play an increasingly important role in determining overall energy spend. Businesses that take a more strategic approach to energy management are often best placed to control costs, reduce risk and build long-term resilience.
How GLEG Can Help
At GLEG, we help businesses understand the full picture behind their energy costs.
From procurement and bill validation to sustainability planning and carbon reduction strategies, we work with organisations across the UK to identify savings opportunities and support smarter energy decisions.
If you’d like to review your current energy arrangements or understand how future policy changes could impact your business, we’d be happy to help. Email hello@gleg.co.uk