Consultation on proof of UK consumption of overseas electricity

Publication date
12th January 2016
Closing date
8th March 2016
Policy areas

Providing proof of UK consumption of overseas electricity is not straightforward under market coupling. It relies on the power exchanges implicitly allocating cross-border interconnector capacity based on price differentials, rather than market participants explicitly booking and nominating interconnector capacity.

Given the nature and complexity of this issue, we held an open consultation from March to June 2015 to seek stakeholder views on the use of LECs to prove UK consumption of overseas electricity for the Climate Change Levy Exemption for Renewables (CCL) under market coupling, and in particular, the evidence required in this case. Having reached a decision on this topic, we are publishing our decision document alongside this new consultation document.

We are consulting further because the analysis underpinning our decision raised several questions that we would like stakeholder input on. In particular, we are looking to understand stakeholders’ views on the specific evidence requirements for proving consumption in the UK for the purposes of Fuel Mix Disclosure (FMD) and other associated schemes such as Feed in Tariffs (FIT) and Contracts for Difference (CfD).