Consultation outcome

Supplier Obligation: Consequential amendments to the Balancing and Settlement Code

• From: Department of Energy & Climate Change
• Published: 24 November 2014
• Last updated: 25 June 2015 — See all updates

This consultation has concluded

Read the full outcome

Government response to Changes to the CFD supplier obligation and Electricity Intensive Industries exemption from CFD costs - Amendments to the Balancing and Settlement Code consultations

PDF, 517 KB, 35 pages

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Modifications to documents maintained under licences (EMR no. 1 of 2015)

PDF, 201 KB, 9 pages

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Draft Modifications to the Balancing and Settlement Code

PDF, 204 KB, 9 pages

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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.

BIS has published the Government response to the Electricity intensive industries: relief from the indirect costs of renewables - consultation on eligibility.

The BSC Changes for EMR Energy Intensive Industries are also available as well as the Release page

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Original consultation

Summary

The Government is seeking views on proposed amendments to the Balancing and Settlement Code (BSC) in order to facilitate implementation of the proposed exemption from a proportion of the costs of the Contracts for Difference (CfD) supplier obligation and operational costs levies for suppliers of eligible Electricity Intensive Industries (EIIs).

This consultation ran from
10am on 24 November 2014 to 11:45pm on 21 December 2014

Consultation description

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:

• DECC webpage

• BIS webpage

• Original eligibility consultation

• Second eligibility consultation

• Implementation consultation

Documents

Electricity Intensive Industries exemption from CfD costs: Amendments to the Balancing and Settlement Code

PDF, 481 KB, 20 pages

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Annexes

4.34 MB

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Published 24 November 2014
Last updated 25 June 2015 + show all updates

1. 25 June 2015

   Final modifications to the Balancing and Settlement Code for electricity intensive industries.

2. 19 January 2015

   Government response to Changes to the CFD supplier obligation and Electricity Intensive Industries exemption from CFD costs - Amendments to the Balancing and Settlement Code consultations (single response for 2 consultations).

3. 24 November 2014

   First published.