Back in the summer budget, the Government announced that the Climate Change Levy (CCL) exemption for renewable energy would be removed from 1st August 2015.
Following this announcement, Levy Exemption Certificates (LECs) which relate to renewable electricity generated after 1st August 2015 will no longer be eligible for the purposes of the CCL exemption.
EON have confirmed today that they will be overseeing a transition period to redeem any LECs relating to generation before 1st August 2015, however this period length has not been determined by the Government.
Formal legislation has yet to be passed however this is expected later this month.
Following this announcement EON, like many suppliers, have been working to understand the effect on the customers they have who have levy exempt contracts and how they can help limit the effects of this.
The suppliers aren't able to absorb the full cost impact of these changes however they have held off action until now which has meant that there will be no rate changes until 1st November 2015, this date is subject to change.
Eon have stated that: This means that invoices for consumption from 1 November 2015 onwards for customers on levy exempt contracts will see two changes: ? The unit rate will be reduced (due to the removal of the LECs premium) ? CCL will be added to bills, this will show as a separate line item (subject to any existing Climate Change Agreement (CCA) or exemptions in place)
They will be contacting all customers who will be affected by this to confirm any changes to their accounts.