Business Impact Target (2018-2019)

Reports, plans and updates

Publication date

Industry sector

  • Supply and Retail Market
  • Distribution Network
  • Offshore Transmission Network
  • Transmission Network
  • Generation and Wholesale Market

Scheme name

  • CCL
  • Domestic RHI
  • ECO
  • FIT
  • GER
  • Non-Domestic RHI
  • REGO
  • RO
  • WHD

What is the Business Impact Targets?

Under the Small Business, Enterprise and Employment Act 2015, a new government is required to set a target for the economic impact on business of qualifying regulatory provisions made during the course of the Parliament – this is the Business Impact Target (BIT).

The Enterprise Act 2016 introduced a statutory requirement on regulators, including Ofgem, to carry out assessments of the economic impact on business of qualifying regulatory provisions. These assessments contribute to the Business Impact Target.

The process we follow

Regulators must assess regulatory provisions to identify the ones that are qualifying regulatory provisions for assessment.

A “regulatory provision”, in relation to a business activity, means a provision which:

  • imposes or amends requirements, restrictions or conditions, or sets or amends standards or gives or amends guidance, in relation to the activity, or
  • relates to the securing of compliance with, or the enforcement of, requirements, restrictions, conditions, standards or guidance which relate to the activity.

We use the BIT methodology as set by government to assess qualifying regulatory provisions. The BIT score is derived from the Equivalent Annual Net Direct Cost to Business (EANDCB). It is an estimation of the direct cost to businesses. 

We submit our assessments to the Regulatory Policy Committee (RPC) for verification. The RPC is an independent body appointed by the government.  Additionally, regulators must publish a summary of all regulatory provisions that are non-qualifying for the purposes of the BIT because they fall into an administrative exemption. These are non-qualifying regulatory provisions.

Reporting on the BIT

In order to meet our requirements for the reporting period 21 June 2018 – 20 June 2019, we are publishing:

  • a list of the qualifying regulatory provisions which have come into force with their BIT score validated by the Regulatory Policy Committee;
  • a summary statement of all non-qualifying regulatory provisions that came into force during this reporting period; and
  • RPC validation of qualifying regulatory provisions: Domestic gas and electricity default tariff cap.