Download the full outcome
Detail of outcome
The CfD Supplier Obligation will be a statutory obligation on suppliers to make payments to fund the payments that are due under CfDs to generators. The CfD Supplier Obligation Policy update sets out our current thinking on the design of the supplier obligation in advance of a detailed policy proposal being published for consultation in the Autumn, it also responds to the call for evidence published in November 2012, which closed on 15 January 2013.
It covers latest thinking on the design of the supplier obligation, the ‘backstops’ to ensure certainty of payment, along with the next steps.
Detail of feedback received
We have published 6 responses received to this call for evidence.
The Secretary of State for Energy & Climate Change published an EMR Policy Overview alongside the introduction of the Energy Bill on 29 November 2012. Within the Overview document, Annex A - Feed in Tariff Contracts for Difference: Operational Framework, sets out the Government’s intended approach to the supplier obligation. This is a levy on all licensed suppliers in Great Britain and Northern Ireland to collect the money owed to generators under the Contracts for Difference (Chapter 5). This includes proposals for a variable rate obligation, and design features, such as settlement periods and backstops.
This call for evidence seeks input from electricity suppliers in particular, on the impacts on their businesses of the proposed approach and will be used to help inform the design of the supplier obligation.