Amendments to Electricity Supplier Obligation Regulations to implement the Power CCUS Dispatchable Power Agreement business model
This consultation is open for responses
Respond to this consultationSummary
DESNZ proposes amending the CfD supplier obligation regulations to enable the electricity supplier levy to fund Dispatchable Power Agreements (DPAs) for power CCUS projects. The amendment would use the existing CfD cost recovery mechanism to collect payments for a new support scheme targeting gas generation with carbon capture. This extends the supplier obligation beyond its original CfD remit.
Why it matters
This creates a precedent for using the CfD levy mechanism to fund non-CfD support schemes, potentially making it a general green levy collection vehicle. The consultation was reopened after omitting the impact assessment, suggesting the cost implications were not properly disclosed initially.
Key facts
- •Uses existing CfD supplier obligation levy mechanism
- •Supports power CCUS through DPA business model
- •Consultation reopened for 28 days due to missing impact assessment
- •Amends 2014 CfD regulations rather than creating new levy
Areas affected
Related programmes
Memo
We're seeking views on the proposed amendments to The Contracts for Difference (Electricity Supplier Obligations) Regulations 2014. The amendments will enable the electricity supplier obligation levy to be charged for payments under the Dispatchable Power Agreement (DPA), that will support deployment of power carbon capture, usage and storage (power CCUS). Read the [consultation document on GOV.UK](https://www.gov.uk/government/consultations/amendments-to-electricity-supplier-obligation-regulations-to-implement-power-ccus-dispatchable-power-agreement-business-model). Please note: We have reopened this consultation for an additional 28 days because the consultation-stage Impact Assessment was incorrectly omitted when first published. If you responded to the original consultation, you do not need to re-submit your response unless you wish to comment on the consultation-stage Impact Assessment.