Amendments to Electricity Supplier Obligation Regulations to implement power CCUS Dispatchable Power Agreement business model
Read the full outcome
Detail of outcome
The consultation invited views on proposed amendments to The Contracts for Difference (Electricity Supplier Obligations) Regulations 2014. The amendments would enable the Contract Counterparty to calculate electricity supplier levy payments on the basis of the proposed payment mechanism in Dispatchable Power Agreement (DPA) to support the deployment of power carbon capture, usage and storage (power CCUS) as well as the existing payment mechanism in the renewable Contracts for Difference terms and conditions.
The government response summarises the responses received and the government’s view on:
- general themes relating to the development of the Dispatchable Power Agreement (DPA) and its funding
- the use of the Electricity Supplier Obligations levy under the 2014 regulations
- the Contracts for Difference (CfD) contribution calculation
- proposed amendments on the Interim Levy Rate (IRL) forecast
- the approach to the Transport and Storage Regulatory Investment (TRI) Revenue model
The government response sets out the proposed amendments to the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014 and related policy rationale. The responses have been taken into consideration in developing the related statutory instrument, The Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2024.
Detail of feedback received
We received 14 responses to the consultations from a wide range of stakeholders, including:
- electricity suppliers
- power generation operators
- power generation developers
- industry trade bodies
- consumer charities
Original consultation
Consultation description
Update: 12 March 2024
This consultation originally ran from 4 December 2023 to 29 January 2024.
We have reopened it for an additional 28 days because the consultation-stage Impact Assessment was omitted in the original.
If you responded to the original consultation, you do not need to re-submit your response unless you want to comment on the consultation-stage Impact Assessment.
This consultation seeks views on proposed amendments to The Contracts for Difference (Electricity Supplier Obligations) Regulations 2014. The amendments will enable the electricity supplier obligation levy to be charged for payments under the Dispatchable Power Agreement (DPA), that will support deployment of power carbon capture, usage and storage (power CCUS).
The consultation will be of interest to anyone with an interest in the development of CCUS policy, including:
- consumer groups
- devolved administrations and local government
- investors and developers involved in potential CCUS projects
- the industrial and energy sectors more widely
- NGOs and other organisations with an interest in climate and energy
- electricity traders and suppliers
However, any organisation or individual is welcome to respond.
Documents
Updates to this page
Last updated 29 July 2024 + show all updates
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Added the government response to this consultation.
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We are rerunning this consultation for an additional 28 days because the consultation-stage Impact Assessment was omitted in the original. If you responded to the original consultation, you do not need to re-submit your response unless you want to comment on the consultation-stage Impact Assessment.
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First published.