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Green Gas Levy Consultation Response

Green Gas Trading (GGT) has responded to the recent Green Gas Levy (GGL), announced in the March 2020 Budget, consultation. The GGL will fund support for biomethane injection into the gas grid through the new Green Gas Support Scheme. Proposals for this scheme were set out in the April 2020 consultation ‘Future support for low carbon heat‘.

The consultation aimed to gather views on the policy options for the GGL and covered:

• the design of the Green Gas Levy
• the budget control and financial management of the Green Gas Levy
• an explanation of the anticipated impact on gas bills for domestic and non-domestic customers
• the administration, compliance, and enforcement of the scheme
• how payments will be made on the Green Gas Support Scheme ahead of the first Green Gas Levy collection
• a future transition to a volumetric approach to the design of the Green Gas Levy

As well as providing GGT’s views its members were also asked for their input on the proposals. Some of the main points that GGT and its members included in the response to BEIS were:

• explaining what certificates are, what they were used for, and how they can be priced and that they should not be used when considering current or future tariff levels.
• the potential unintended consequences of requiring 100% of green gas supply to be exempt from paying the levy. GGT also proposed a few alternative approaches that could be explored.
• the need to acknowledge those customers and suppliers who have historically used certificates prior to the levy being introduced.
• the requirements for Ofgem to facilitate the schemes smooth operation.

In the consultation response GGT also posed some questions to BEIS that can be found in the full response including the implications of the recast Renewable Energy Directive (REDII) in the UK. The full response to the GGL consultation can be found in the reports section in the members access section of the website.

Those members who require access to be set up should contact the scheme administrator.

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