Energy-intensive industries: exemption from indirect costs of the Contracts for Difference scheme
Read the full outcome
Detail of outcome
Following the responses to the consultation we will bring in amended regulations introducing an exemption for the costs of Contracts for Difference (CFD).
We’re still considering options to recover over-exemptions. We will respond to this at a later date. In the interim, recovery, but not redistribution, will be possible under generally applicable law.
For more information see the Government response above and the technical note on electricity supply estimates.
The Draft guidance above has now been finalised and published:
Detail of feedback received
We received responses from 46 organisations, including:
- businesses
- trade associations and representative bodies
- energy suppliers and providers
- government
- regulators
Original consultation
Consultation description
We’re proposing changes to the regulations that underpin the exemption of energy-intensive industries (EIIs) from indirect costs of the Contracts for Difference (CFD) scheme. We’re also consulting on options to recover over-exemptions from the indirect costs of the CFD, Renewables Obligation and Feed-in-Tariffs schemes.
Without intervention, there is a risk that EIIs face significant rises to their energy bills, placing them at a serious competitive disadvantage.
We’re seeking views from:
- legal and regulatory specialists
- trade associations
- energy intensive industries
- energy suppliers and providers
- others with an interest in the UK energy infrastructure
Documents
Updates to this page
Published 22 July 2016Last updated 20 November 2017 + show all updates
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Link to final version of guidance added.
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Added consultation outcome and draft guidance.
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First published.