Notice of changes to the Environmental Discretionary Reward Scheme Guidance

Publication date
10th February 2015
Information type
Policy area

The Environmental Discretionary Reward (EDR) Scheme provides a financial and reputational incentive for electricity transmission companies that supply evidence that they are facilitating the transition to low carbon energy systems and are achieving high standards of environmental management.

On 9 February 2015, in accordance with paragraph 12 of Part D of special condition 3F of the electricity transmission licenses, we gave notice to licensees that we propose modifications to the EDR guidance.

The reason that we are proposing changes to the EDR Scheme Guidance is to further refine and streamline certain aspects of the EDR Scheme in the light of feedback we have received from the EDR Scheme expert panel and the licensees.

We have reduced the number of criteria against which the companies have to produce evidence and clarified these. While retaining the focus on the use of evidence to indicate performance, we propose that for each company there will be a question and answer session with the panel, following which it will give advice to us. This will allow follow-up of any issues of particular interest to the panel in its strategic deliberations. For the companies, this will also provide an opportunity to gain feedback on their strategic approach in addressing low carbon and environmental issues.

Licensees have 28 days to respond to the proposed revised guidance. Its proposed date of effect is 16 March 2015.