Introducing a Network Charge Compensation allowance in the energy price cap

Introducing a Network Charge Compensation allowance in the energy price cap | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Introducing a Network Charge Compensation allowance in the energy price cap Publication type: Consultation Publication date: 12 December 2024 Closed date: 09 January 2025 Status: Closed (with decision) Decision: Introduction of a Network Charging Compensation (NCC) scheme allowance in the energy price cap decision Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn We are seeking views on how we should add an allowance into the energy price cap to reflect the Network Charge Compensation scheme (NCC scheme). This allowance would be introduced from cap period 14a (April to June 2025) onwards. Who should respond We would like views from stakeholders with an interest in the level of the energy price cap (default tariff cap). We particularly welcome responses from: domestic energy suppliers consumer groups domestic bill payers Background In April 2024, the UK government implemented the British Industry Supercharger NCC scheme. It offers Energy Intensive Industries (EIIs) 60% compensation on electricity network charges for using Great Britain’s electricity grid. Licenced electricity suppliers are obligated to fund this compensation scheme. They are expected to begin incurring costs from April 2025. The government aims to redistribute these costs among non-EII customers. This includes domestic consumers. Why your views matter Your feedback will inform how we will reflect the NCC scheme in the energy price cap. We encourage respondents to consider the specific questions outlined within this consultation. How to respond Please send your response to RetailPriceRegulation@ofgem.gov.uk This consultation closes on 9 January 2025. Main document Introduction of a Network Charge Compensation (NCC) Scheme Allowance in the energy price cap [PDF, 314.47KB] Subsidiary documents Annex 4 - Policy cost allowance methodology v1.19.1 [XLSX, 417.11KB] Response documents Non-confidential responses [ZIP, 1.20MB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close