Consultation on Ofgem's administration of the Green Gas Support Scheme and associated Green Gas Levy - Decision


On March 2021, the Government Response to the Future Support for Low Carbon Heat and the Green Gas Levy consultations named Ofgem as the intended administrator of the Green Gas Support Scheme (GGSS) and associated Green Gas Levy (GGL).

The GGSS is intended to encourage the deployment of new anaerobic digestion (AD) biomethane plants, and consequently the proportion of green gas in the gas grid, by providing support to biomethane producers based on the volume of eligible biomethane they inject into the gas grid. The GGSS will be funded through the Green Gas Levy (GGL), which will be placed on all licenced gas suppliers in Great Britain, with the exception of those who supply at least 95% green gas. The GGSS is expected to launch in Autumn 2021, and the first levy payment will be collected during the first quarter of financial year 2022/23.

On 5 July 2021, we published two consultations, inviting feedback on our proposed administrative approach for the GGSS and GGL. We received 15 responses to our GGSS consultation and 16 to our GGL consultation. These came from a variety of stakeholders, including biomethane producers; gas suppliers; consultancies; and industry and trade associations. 

Document overview

The documents below are our consultation responses which set out our final position on the GGSS and GGL. In these responses, we summarise stakeholder views, present the points raised and respond to that feedback outlining our proposed administrative approach for each aspect of the scheme and, where relevant, how we have changed our approach.

Next steps

The GGSS will open to applicants on 30 November 2021.

Prior to the launch of the scheme, we will publish draft guidance for producers covering applications to the GGSS and the scheme requirements. We will invite stakeholders to provide feedback on this draft guidance. Guidance will be issued iteratively, meaning a second phase of draft guidance providing further details on participants’ ongoing obligations will be published after scheme launch, with a similar comment period also taking place.

The Green Gas Levy will be placed on licensed gas suppliers and will fund the Green Gas Support Scheme. Payments will be collected quarterly, with the first payment being collected in the first quarter of 2022/23.  Suppliers who expect to be provisionally exempt from the levy in 2022/2023 must provide us with notification of this and evidence relating to this within 10 days of the regulations coming into force.

Prior to scheme launch, we will publish draft guidance for suppliers. As with the GGSS guidance, we will issue guidance iteratively and invite stakeholder feedback at each stage.

In addition, we plan to hold stakeholder engagement events in the lead up to scheme and levy launch. Further details, including dates and how to sign up to these events, will follow.