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Detail of outcome
This publication provides the Government response to two Supplier Obligation consultations: ‘EMR: Changes to the CFD supplier obligation’ and ‘Electricity Intensive Industries exemption from CfD costs: Amendments to the Balancing and Settlement Code’.
It sets out the Government’s response to stakeholder feedback and the final policy positions for:
- The exemption from the costs of the CFD for suppliers to Electricity Intensive Industries;
- The exemption from the costs of the CFD for supply from renewable sources in other EU Member States; and
- Minor and technical changes required to the Contracts for Difference (Electricity Supplier Obligations) Regulations.
We have also published the draft amendments to the Balancing and Settlement Code (BSC) which will allow the EII exemption to be applied.
Alongside the publication of the Government response, the Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015 and amendments to the BSC have been laid in Parliament.
We have published the consultation document and annexes containing the proposed BSC amendments. Annexes labelled ‘proposed’ set out A.BMU option and those ending ‘alternative’, the HHDA proposal.
We expect to lay the BSC amendments in Parliament in early 2015. The earliest suppliers will be able to receive the exemption is October 2015, subject to State Aid approval and the Parliamentary process.
This consultation is relevant to electricity suppliers, electricity consumers and their representatives, BSC participants, Ofgem, ELEXON and other stakeholders with an interest in the energy sector. DECC invites interested parties to submit comments and evidence.
To support this consultation, ELEXON have identified the changes that will be needed to the Data Transfer Catalogue (DTC). These changes would be required to support the amendments to section BSCP503 of the BSC if we proceed with Option B. If Option B is progressed the DTC changes will be made via the normal MRASCo DTC change process. Elexon will publish the changes in a news article
Previous consultation and further information on the EII exemption can be found at: