Levelisation

Levelisation is the mechanism by which the total cost of the FIT Scheme is apportioned across licensed electricity suppliers. The cost is allocated between suppliers in proportion to their share of the electricity supply market of Great Britain

All licensed electricity suppliers that have supplied electricity in Great Britain, within the relevant FIT year or quarter are obligated to participate in the FIT levelisation process. They have to declare the amount of electricity they have supplied on the Central FIT Register (CFR) and make a financial contribution towards the scheme in proportion to this.

A licensed supplier is not obligated to make a Levelisation submission if it has not supplied electricity within the relevant levelisation period, unless that licensed supplier is also a FIT licensee and has made payments to FIT generators. 

Where a new or formerly dormant license begins to supply, the Supplier Compliance team (see our contacts page for contact details) should be informed as soon as possible, to ensure that the Central FIT Register is set up to allow for the licensee to make a submission during the next levelisation period. 

 

Submission of levelisation data is made to Ofgem via the Central FIT Register and all obligated suppliers are required to submit the following information:

• Total Electricity Supplied (MWh) - Our recommended methodology for calculating supply data is available in Appendix 7 of our Guidance for suppliers.
• Exempt Supply (MWh) - Electricity that is produced from renewable sources outside of the United Kingdom and within the European Union, that is supplied to customers in Great Britain and is verifiable with a Guarantee of Origin certificate (GoO). 
• EII Excluded Electricity (MWh) – Electricity that is supplied to a qualifying Energy Intensive Industry (EII).

Further information on Exempt Supply and EII Excluded Electricity is available in our Feed-in Tariffs: Guidance for licensed electricity suppliers

Suppliers that are also a FIT Licensee will have to submit additional information, such as:

• Total FIT generation payments made
• Total FIT deemed export payments made
• Total FIT metered export payments made
• Total deemed electricity exported
• Total FIT export payments made (i.e. combined deemed and metered payment)
  
   

Periodic Levelisation

Periodic Levelisation takes place at the beginning of each quarter, looking back at the previous quarter. FIT Years run from April- March, so for the first quarter from April- June you would make a submission for this period in July.

Annual Levelisation 

The Annual Levelisation process occurs at the end of a FIT Year and is a two-month process from August, with Ofgem having a statutory duty to complete this by 1 October each year. The purpose of it is to reconcile the 4 quarters of the previous FIT Year, and includes additional steps, such as the recognition of exempt supply evidence (i.e. GoO certificates). FIT licensees are also required to carry out and submit a bespoke levelisation audit report. 

The schedule for the levelisation process is determined and published before the beginning of each FIT year, no later than 1 March. Please refer to the levelisation schedules found in the publications and updates section of the electricity suppliers page for the dates and deadlines involved in the process.

Once Ofgem has determined the levelisation payment of each active supplier, notice is given to suppliers of their obligation. This notice will include the relevant bank details, amount due and date of the payment. A bank transfer should then be organised by the supplier to the specified Ofgem account.

Please note that payment must have cleared before midnight on the date indicated in the invoice statement. Late payment, underpayment or failure to make payment at all will be regarded as an incident of non-compliance and will be added to the Supplier Performance Report (SPR) and referred to Ofgem’s Enforcement team for consideration.