Business Impact Target (2020) - Final Report
Reports, plans and updates
- Publication date
- Industry sector
- Distribution Network
- Generation and Wholesale Market
- Offshore Transmission Network
- Supply and Retail Market
- Transmission Network
What is the Business Impact Targets?
Under the Small Business, Enterprise and Employment Act 2015, a new government is required to set a target for the economic impact on business of qualifying regulatory provisions made during the course of the Parliament – this is the Business Impact Target (BIT).
The Enterprise Act 2016 introduced a statutory requirement on regulators, including Ofgem, to carry out assessments of the economic impact on business of qualifying regulatory provisions. These assessments contribute to the Business Impact Target.
The process we follow:
Regulators must assess regulatory provisions to identify the ones that are qualifying regulatory provisions for assessment.
A “regulatory provision”, in relation to a business activity, means a provision which:
- imposes or amends requirements, restrictions or conditions, or sets or amends standards or gives or amends guidance, in relation to the activity, or
- relates to the securing of compliance with, or the enforcement of, requirements, restrictions, conditions, standards or guidance which relate to the activity.
We use the BIT methodology as set by government to assess qualifying regulatory provisions. The BIT score is derived from the Equivalent Annual Net Direct Cost to Business (EANDCB). It is an estimation of the direct cost to businesses.
We submit our assessments to the Regulatory Policy Committee (RPC) for verification. The RPC is an independent body appointed by the government. Additionally, regulators must publish a summary of all regulatory provisions that are non-qualifying for the purposes of the BIT because they fall into an administrative exemption. These are non-qualifying regulatory provisions.
Reporting on the BIT:
In order to meet our requirements for the reporting period 13 December 2019 – 16 December 2020, we are publishing:
- the summary statement of all non-qualifying regulatory provisions (NQRPs) that came into force during 13 December 2019 – 16 December 2020.
- During this period there were no qualifying regulatory provisions.