Greeen Gas LevyGreen Gas Support Scheme - Just Another Greeen Gas Levy

The Green Gas Levy draft legislation for the Green Gas Support Scheme was laid before Parliament on 9 September.

The legislation will put in place the arrangements for the green gas levy scheme, which aims to support the production of biomethane by anaerobic digestion for injection into the gas grid. Tariffs for producers will be funded by gas suppliers through the Green Gas Levy.

The regulations commit to launching the green gas levy scheme on 30th November.

From 1 April 2022 suppliers will need to make quarterly levy payments backdated to the start of the scheme.

The draft legislation confirms intended requirements for the first Green Gas Levy rates to be published by BEIS ahead of the November launch date.

BEIS’s impact assessment suggests that the initial levy will be around £1.40 per gas meter point.

Ofgem will be required to publish an administrative scheme schedule for the first scheme year by 1 February 2022, which will confirm dates for suppliers to be notified of their quarterly levy payments.

The notices, to be provided by Ofgem, will include the payment due from the supplier, as well as the date by which, and details on how, payments must be made.

Ofgem will also notify suppliers of the credit cover requirements for each quarter, with suppliers able to provide a letter of credit in respect of all or part of their credit cover requirement.

Once the draft green gas levy legislation has been considered by the Joint Committee on Statutory Instruments, it will be subject to debate by a Delegated Legislation Committee before final approval by the Commons.

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