Levy Exemption Certificates (LECs) meaning

Levy Exemption Certificates (LECs) were certificates used in UK electricity practice to evidence that power had been generated from qualifying renewable sources, allowing licensed suppliers to claim exemption from the Climate Change Levy (CCL) on supplies to non‑domestic customers. Ofgem issued LECs (typically one per MWh) to accredited generators, who could sell or transfer them to suppliers. They commonly appeared in power purchase agreements and supply contracts, often alongside Renewables Obligation Certificates (ROCs) and renewable energy Guarantees of Origin (REGOs). LECs were a statutory mechanism under the Finance Act 2000 and the Climate Change Levy (General) Regulations 2001. The CCL exemption for renewable source electricity was withdrawn with effect from 1 August 2015 (Summer Budget 2015), after which LECs ceased to have value for CCL purposes and are no longer issued or redeemable. Historic LECs may still be relevant in billing, settlement and disputes for periods before that date. Usage was consistent across England & Wales, Scotland and Northern Ireland as part of the UK tax regime. LECs did not apply in Ireland, which operates separate renewable support and certification schemes. For current proof of renewable content, suppliers use REGOs; LECs are now a legacy term.