Electricity: Storage:Written question - HL1254

Asked on: 05 September 2017
Department for Business, Energy and Industrial Strategy
Electricity: Storage
To ask Her Majesty's Government whether they intend to remove the double charging of consumption levies in relation to storage facilities.
Answered by: Lord Prior of Brampton
Answered on: 13 September 2017

The Government and Ofgem’s Smart Systems and Flexibility plan, published in July, addressed the issue of storage operators paying levies intended for final consumers, on the electricity they procure from energy suppliers. Electricity supplied to generation licence holders is excluded from the supply volumes used to calculate the costs of the Renewables Obligation, Contracts for Difference and Feed in Tariffs schemes, and Capacity Market auctions. Ofgem will shortly consult on a new modified generation licence for storage facilities, which would mean that holders of this licence would not pay towards such levies.

The Government has also clarified that the electricity received and stored by electricity storage facilities may be supplied to them free from the Climate Change Levy where relevant conditions are met, as set out in HM Revenue and Custom’s Excise Notice CCL1/3 – Reliefs and special treatments for taxable commodities.

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