Supplier

The Gas Shipper Obligation (GSO) is intended to be the long-term funding mechanism for initial hydrogen production projects funded through the Hydrogen Production Business Model. It may also fund further hydrogen projects, subject to future decisions on the hydrogen programme and the funding of future hydrogen production projects. At its core, the GSO is a levy on Gas shippers.

The government has launched the CfD Clean Industry Bonus (CIB). Fixed and floating offshore wind applicants can obtain extra CfD revenue support if they choose to invest in more sustainable supply chains

LCCC is expecting an amendment to the Supplier Obligations to fund this scheme as it is to launch for AR7.

The Dispatchable Power Agreement (DPA) is a private law contract between a carbon emitting electricity generator and Government which sets out the terms for capturing and storing carbon and the compensation which the generator will receive in return. In November 2024, Government has introduced an amendment to the Electricity Supplier Obligations in order to fund DPA payments to Power CCUS Generators.

The DPA will be funded via the CfD Levy

Scheme Admin: EMRS

The NCC (Network Charging Compensation) Scheme compensates network charges to exempt users. It is funded via the EII Support Levy, allowing compensation to be paid out to EIIs.

Scheme Admin: HM Gov.

CCL (Climate Change Levy) is an environmental tax charged on the energy used by businesses to encourage them to be more energy efficient. These charges are passed through in energy bills to non-domestic users by gas and electricity suppliers.

Scheme Admin: Ofgem

Under the GGL (Green Gas Levy), gas suppliers make quarterly levy payments which are calculated according to the number of meter points they supply. These payments support the GGSS (Green Gas Support Scheme) which provides financial incentives for new anaerobic digestion biomethane plants to increase the proportion of green gas in the gas grid.

Scheme Admin: Ofgem

The FIT (Feed In Tariff) scheme is designed to promote the uptake of small-scale renewable and low-carbon electricity generation in Great Britain.

Scheme Admin: Ofgem

The RO (Renewables Obligation) is the main support mechanism for large-scale renewable electricity projects in Great Britain. Electricity suppliers must report their electricity supply volumes and meet their annual obligation by presenting Renewables Obligation Certificates (ROCs), making a payment into a buy-out fund or a combination of the two.

Scheme Admin: Ofgem

ECO (Energy Companies Obligation) supports low-income, vulnerable and fuel-poor households by placing obligations on energy suppliers to deliver insulation and heating measures to domestic premises. The scheme aims to reduce fuel poverty and energy bills in the long-term and reduce carbon emissions.

Scheme Admin: Ofgem

Electricity suppliers that meet the domestic customer threshold are obligated under the Warm Home Discount (WHD) scheme. Obligated Suppliers must provide a £150 annual electricity rebate to those at risk of fuel poverty, as well as further contributions towards preventing fuel poverty.

Scheme Admin: Ofgem

The OLR (Off-Taker of Last Resort) scheme offers a backstop auction for generators with an Investment Contract or CFD contract, but no power purchase agreement (PPA). Suppliers have an obligation to participate in OLR levelisation. Electricity suppliers with 6% or more of the market share are also obligated to bid in OLR auctions.

Scheme Admin: FMD

FMD (Fuel Mix Disclosure) is the annual process whereby all suppliers must disclose to their customers the mix of fuels used to generate electricity. FMD ensures that there is transparency over the proportion of electricity generated from renewable sources.

Scheme Admin: Ofgem

SEG (Smart Export Guarantee) enables small-scale low-carbon electricity generators in Great Britain to receive payments from electricity suppliers for the electricity they export to the National Grid. This helps to support the deployment of low-carbon electricity generation and the transition to net zero.