Jurisdiction: Great Britain

Commencement: 1st July 2022

Amends: The Green Gas Support Scheme Regulations 2021
Mini Summary

The Green Gas Support Scheme (Amendment) Regulations 2022 introduce the Green Gas Support Scheme and Green Gas Levy. They are relevant to licenced gas suppliers who are required to pay a quarterly levy to fund the scheme and scheme participants who are provided with a tariff guarantee for biomethane injected into the grid.

Duties

Various duties apply.
Amendment

In response to inflation, the methods used to adjust a person’s guaranteed tariff* are revised. Any adjustments to guaranteed tariffs will now be made at the start of the financial year by the percentage increase, or decrease, in the consumer price index (CPI)** over the previous year.

*All Green Gas Support Scheme (GGSS) applications require a tariff guarantee, which means that once a participant has a tariff awarded and is fully registered on the scheme, they will receive that tariff throughout the GGSS payment period, regardless of any future fluctuations.

**CPI is an indicator used to measure inflation by tracking the change in prices over time, paid by consumers for a basket of goods and services.

Amendments are also made to the method used to calculate the estimated total budget commitment, so that it better reflects expected future payments for additional biomethane capacity. In order to see if there is enough budget to accept new applications to the GGSS, the estimated total budget commitment for each financial year will be checked against the budget allocation published by the Secretary of State.

N.B. The Department for Business, Energy and Industrial Strategy (BEIS) is in charge of setting an annual tariff guarantee budget cap. BEIS may only issue a tariff guarantee if there is available budget not already committed.

There are no changes in duties for organisations.

 
  

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Jurisdiction: GB

Commencement: 30th November 2021

Amends: New Legislation
Mini Summary

These Regulations introduce the Green Gas Support Scheme and Green Gas Levy. They are relevant to licenced gas suppliers who are required to pay a quarterly levy to fund the scheme and scheme participants who are provided with a tariff guarantee for biomethane injected into the grid.

Summary

The Green Gas Support Scheme (GGSS) is introduced from 30th November 2021, to facilitate and encourage the production of biomethane for injection into the grid by anaerobic digestion*. Under the GGSS those that produce, or are proposing to produce, biomethane for injection by anaerobic digestion can apply for a tariff guarantee for the production of the biomethane.

*Anaerobic digestion is the bacterial fermentation of biomass in the absence of oxygen.

The scheme will run for 4 years until 30th November 2025 and any biomethane injected into the grid after this date is not eligible for the tariff guarantee.

The GGSS is funded by the Green Gas Levy (GGL). All licenced fossil fuel gas suppliers in Great Britain are required to pay a quarterly levy which is based on the number of meter points they serve. Further information on the GGL duties can be found below.

Ofgem is the Authority responsible for administering the GGSS and the associated GGL.
Duties
Various duties for businesses.

 

Link to full government text

 
  

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