UK GVT Network Compensation

On Jun. 29, UK GVT consulted on network charging compensation.

  • Consultation British industry supercharger: network charging compensation scheme.
  • Document dated Jun. 29, 2023, was received on Jul. 4, 2023 due to a fixed feed.
  • Consultation
  • This addresses 1 of the 3 elements of the package of measures announced as part of the British Industry Supercharger (BIS) for all the Energy Intensive Industries (EIIs).
  • Follows, UK GVT Aug. 2022 review of energy intensive industries exemption, #145859.
  • Measures include increase from 85% to 100% relief through via scheme from costs of renewable levies; 100% indirect exemption from capacity market charges; network charging costs compensation via EII Network Charging Compensation (NCC) scheme.
  • Feedback sought on the proposed NCC scheme, as well as on its funding mechanism.
  • Effectiveness
  • Consultation closes at 6pm on Aug. 24, 2023.
  • Oct. 2023 UK GVT Response
  • On Oct. 11, 2023, UK GVT published its feedback on the consultation, with a summary of the responses that it had received, and details of the next steps that were planned.
  • 29 responses from stakeholders, including Energy Intensive Industry (EII) companies, business representative organisations, trade associations, energy suppliers, others.
  • Responses represented the views of over 2000 organisations, when taking into account all of the bodies who had answered on behalf of the various multiple members.
  • This document provides a full government response after analyzing all the responses.
  • UK GVT response sets out proposed policy change to compensate EIIs who meet the eligibility criteria from a portion of cost that is associated with the use of the network.
  • The NCC Scheme will offer EIIs 60% compensation on eligible network charging costs.
  • As NCC Scheme is funded via EII Support Levy, compensation will be paid out to EIIs, in arrears, once funds have been raised via Levy, subject to proof of charges paid.
  • Following the conclusion of this consultation, UK GVT intends to take forward proposed measures to compensate EIIs for a portion of their network charges, based on existing eligibility criteria outlined in consultation, which will apply to full package of measures.
  • It intends to legislate with a Statutory Instrument in Spring 2024 to enable changes to be made to calculations and for savings to start to materialize from around Apr. 2024.

Regulators UK GVT
Entity Types CNSM; Corp
Reference FS, PR 10/11/2023; CP, PR 6/29/2023
Functions Compliance; Financial; Legal; Operations; Product Administration; Product Design; Risk; Treasury
Countries United Kingdom
Products Commodities; Corporate
Regions EMEA
Rule Type Final
Rule Date 6/29/2023
Effective Date 4/30/2024
Rule Id 178408
Linked to Rule :145859
Reg. Last Update 10/11/2023
Report Section UK

Last substantive update on 10/13/2023