Introducing a Network Charge Compensation allowance in the energy price cap
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
- Publication date
- Closing date
- Industry sector
- Supply and Retail Market
- Decision
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.