Nuclear plants may get CCL exemption
The government is likely to consider removing the burden of the climate change levy from nuclear power companies when a draft publication of the Energy Review is released next week.
The review, undertaken by the Cabinet Office’s Performance and Innovation Unit, dates back to July and includes submission from nuclear generators British Energy and British Nuclear Fuels.
In its submission, British Nuclear Fuels said the government should modify current climate change mechanisms, such as the Climate Change Levy,’recognising that nuclear generation should benefit from the fact that it makes virtually no contribution to greenhouse gas emissions’.
British Energy called for nuclear power to be exempt from the levy.
The CCL was introduced to the UK economy in April 2001 and taxes companies that supply electricity, natural gas, petroleum, coal, lignite and various forms of coke to a range of UK industries, and is calculated on the number of energy units produced. Unlike VAT, it is not refundable.
A spokeswoman for Customs told AccountancyAge.com the review was still in the ‘advisory stage’ and would only be considered by government when the draft document is published on 15 November.
But she added: ‘Treasury will have the final say on the levy.’
Currently only companies producing solar and wind energy are exempt from the levy.
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