New obligations for gas suppliers under the GGL

The Green Gas Support Scheme (GGSS) was launched on 30 November 2021, which aims to financially support producers of biomethane through anaerobic digestion. The scheme will be funded through the Green Gas levy (GGL), by placing an obligation on all fossil fuel gas suppliers, with the exception of those that supply 95% or more green gas.

Under the GGL, gas suppliers will need to:

  • Submit or verify meter point data (relating to the number of meter points the supplier served on each day of the previous quarter) at the start of each quarter and within five working days of Ofgem’s request. This will be used by Ofgem to calculate levy payments and credit cover requirements for each obligated supplier.

Ofgem will request the first lot of meter point data on 7 February, covering the period 31 August to 31 December 2021.

  • Lodge credit cover ahead of each quarter and within 14 calendar days of Ofgem’s request. This can be in the form of cash or a letter of credit and will be used in instances when a supplier fails to meet a payment obligation by the deadline required.

Ofgem will request the first credit cover on 25 February.

  • Make quarterly levy payments.

Ofgem will request the first levy payment on 29 April.

Ofgem has recently published guidance on the GGL and an Annual Scheme Schedule for 2022-23.

Gas suppliers will need to make sure that they are aware of all key dates set out in the GGL scheme schedule and the timescale for providing data or making payments. All of the information needed to meet the obligations under the scheme is set out in our Energy Supplier Compliance Portal, which is an online resource setting out all of the rules that suppliers need to comply with. It is updated quarterly and tracks regulatory and compliance developments, such as changes to licence conditions, new licence conditions, signposting to guidance materials, and setting out examples of good practice. The latest update of the portal went live on 1 February.

Get in touch with Kate Morley-Hurst at k.morley-hurst@cornwall-insight.com if you would like further information on the Energy Supplier Compliance Portal. We offer a walkthrough of the portal and a free trial so you can see how it can help you.

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