Network Charging Compensation Scheme
The Network Charging Compensation Scheme (NCC Scheme) is a crucial element of a broader package of government measures designed to ensure that Britain’s Energy Intensive Industries (EIIs) retain their competitive edge in the global marketplace. This initiative is particularly significant as it offers substantial financial relief to industries that are heavily reliant on energy, helping them manage costs associated with using the Great Britain electricity grid.
What is the Network Charging Compensation Scheme?
The NCC Scheme provides a 60% compensation on network charging costs for eligible Energy Intensive Industries. These costs include the Transmission Network Use of System (TNUoS), Distribution Use of System (DUoS), and Balancing Services Use of System (BSUoS) charges. In essence, the scheme significantly reduces the financial burden on EIIs, allowing them to continue their operations without being crippled by the high costs of energy consumption.
Funding and implementation
The compensation provided under this scheme is funded by a levy on electricity suppliers, aptly named the EII Support Levy. This levy will be introduced from April 2025, with the amount each supplier contributes determined by their market share. The funds generated will then be used to compensate EIIs for the network charges they incur.
Eligible EIIs can expect to start receiving compensation payments from May 2025. The regulatory framework governing this scheme is outlined in The Energy-Intensive Industry Electricity Support Payments and Levy Regulations 2024, which officially came into effect on 1st April 2024. As the scheme moves forward, there will be increased engagement with suppliers and the development of the systems required to support payment calculations and invoicing processes.
How the scheme works
Who is eligible?
To qualify for the compensation, a business must hold an EII certificate for the entire month for which they are applying for an electricity support payment. This ensures that only those industries that truly need the support can benefit from the scheme.
Registration and application process
We can provide guidance and manage Eligible EIIs’ registration, application and claims from start to finish.
Further information and support
If you believe your business qualifies for this compensation or if you want to learn more about the Network Charging Compensation Scheme and how it can benefit your operations, don’t hesitate to reach out.
Contact Control Energy Costs today for expert advice and assistance in navigating this valuable scheme. Our team is here to ensure you maximise your benefits and maintain your competitive position in the global market.
