Proposals for a green gas levy
Applies to England, Scotland and Wales
Detail of outcome
The government response to the Future support for low carbon heat consultation incorporates a response to this consultation.
The government intends to proceed with the launch of the green gas levy (GGL). Decisions in the response include:
- the scope of the levy
- frequency of levy payments and the collection of meter point data
- impacts on bill payers
- a comprehensive cost control framework
- a robust compliance and enforcement package, including mutualisation, financial penalties, interest rates and public reporting
- the rationale for launching with a per meter point levy design and the intention to transition to a volumetric levy design as soon as feasibly possible, as well as considerations for this, are also outlined
Detail of feedback received
This consultation received 60 responses from:
- gas suppliers (16)
- consumer groups and associations (25)
- businesses, members of the public and other organisations
Respondents were broadly supportive of the proposals outlined in the consultation.
Original consultation
Consultation description
Heating of homes, businesses and industry is responsible for a third of the UK’s greenhouse gas emissions, making the decarbonisation of heat one of the biggest challenges we face in meeting our climate targets.
The Green Gas Levy, announced in the March 2020 Budget, will fund support for biomethane injection into the gas grid through the new Green Gas Support Scheme. Proposals for this scheme were set out in the April 2020 consultation Future support for low carbon heat.
In this consultation, we are seeking views on policy options for the Green Gas Levy. It covers:
- the design of the Green Gas Levy
- the budget control and financial management of the Green Gas Levy
- an explanation of the anticipated impact on gas bills for domestic and non-domestic customers
- the administration, compliance, and enforcement of the scheme
- how payments will be made on the Green Gas Support Scheme ahead of the first Green Gas Levy collection
- a future transition to a volumetric approach to the design of the Green Gas Levy
We are working with devolved administrations to implement these proposals across Great Britain.
Consultation workshops
We will hold workshops in mid-October on the design of the levy. These will primarily be of interest to gas suppliers, but are open to everyone. Space will be limited to 1 person per organisation.
If you would like to attend a workshop, please email gglconsultation@beis.gov.uk.
Responses
See the BEIS consultation privacy notice.
Please respond online via our consultation hub wherever possible. It is our preferred method of receiving responses. Responses submitted by email will be accepted. If responding by email, please use the response template here.
Please do not send responses by post to the department at the moment as we may not be able to access them.
Documents
Last updated 17 March 2021 + show all updates
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The government response to Future support for low carbon heat (https://www.gov.uk/government/consultations/future-support-for-low-carbon-heat) incorporates a response to this consultation.
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Consultation stage impact assessment published.
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First published.