United KingdomGOV.UK
Electricity climate levy frozen for April 2028, not cut
The electricity Climate Change Levy main rate will be frozen from April 2028 at 2027-28 levels instead of the previously published 10% cut; gas and solid fuel rise with inflation.
By Taxxa AI OyPublished 29 October 2026
The Climate Change Levy electricity main rate will be frozen from 1 April 2028GOV at the 2027 to 2028 levels, replacing outright the previously published 10% reduction for electricity.
Gas and solid fuel rates will increase in line with the retail price index, while liquefied petroleum gas continues to be frozen. Those two positions are unchanged from the previous publication: only the electricity outcome has moved, from a cut to a freeze.
The published main-rates table puts the trajectory in context. For 1 April 2027 the electricity rate stands at 0.00827 pounds per kilowatt-hour and gas at the same 0.00827 pounds, with liquefied petroleum gas at 0.02175 pounds per kilogram and any other taxable commodity at 0.06468 pounds per kilogram. Freezing the electricity main rate from April 2028 holds it at the 2027 to 2028 level instead of reducing it, while the gas and solid-fuel lines rise with inflation.
The levy rate varies by commodity, measured in kilowatt-hours for gas and electricity and in kilograms for all other taxable commodities. Business energy suppliers are responsible for charging the correct levy to their customers, and the levy does not apply to taxable commodities supplied to domestic consumers and charities for non-business use. Reduced rates remain available to holders of a climate change agreement: the published table gives a 92% discount for electricity, 89% for gas and any other taxable commodity, and 77% for liquefied petroleum gas. Alongside the main rate, electricity generators and combined heat and power operators separately pay Carbon Price Support rates. The published position for April 2028 electricity is therefore a flat rate, not a cutGOV.
The April 2028 position is confirmed in the publication on Climate Change Levy rates from 1 April 2028, with business energy suppliers charging the levy under the Climate Change Levy main-rate rules.
Business energy advisers and suppliers should update April 2028 assumptions to hold the electricity Climate Change Levy main rate flat at 2027 to 2028 levels and apply the retail price index increase to gas and solid fuel.