Supplier Obligations: Environmental and social schemes
There are government schemes in Great Britain to incentivise renewable energy generation, energy efficiency and to support vulnerable energy consumers. Some of these schemes place obligations on licensed energy suppliers. The nature and level of obligations depend on a supplier’s:
- licence type(s) (gas or electricity supply)
- supply volumes
- domestic supply customer count
To help suppliers meet these obligations, we have briefly outlined the purpose and requirements for each environmental and social scheme along with links to further information. The schemes are listed below according to the organisation that administers them.
On a specific date each year all energy suppliers are required to notify Ofgem of their number of domestic customers and the volume of gas and electricity they have supplied. This information is used to determine their obligations under each environmental and social scheme that we administer.
If suppliers fail to meet their obligations, Ofgem may take enforcement action in accordance with its powers as Great Britain’s independent energy regulator.
See the full conditions for the supplying of electricity or gas to domestic and non-domestic premises.
Supplier obligation schemes administered by the Low Carbon Contracts Company and Elexon
The Electricity Market Reforms (EMR) introduced the Capacity Market (CM) and Contracts for Difference (CfD) schemes. These place an obligation on suppliers that is ultimately enforced by Ofgem as the energy regulator, but payments are administered by the Low Carbon Contracts Company (LCCC), Electricity Market Reform Settlement (EMRS) and the Electricity Settlements Company (ESC).