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Ofgem has approved a modification to the Balancing and Settlement Code (BSC) that will provide an enduring solution to the doubling charging of electricity of final consumption levies on stored electricity.
The modification will ensure that all electricity imported to storage sites is exempt from the levies, which recover the costs of schemes such as Contracts for Difference and the Capacity Market.
Ofgem has previously approved multiple BSC modifications to facilitate the cessation of the double charging of final consumption levies on stored electricity. These include P383, which introduced new arrangements for collecting and aggregating data from metering data from storage sites, and P375, which allowed behind-the-meter assets to be incorporated into secondary balancing mechanism units.
However, the “interim” solution provided by these modifications only applies to “simple sites”, that is, Supplier Volume Allocation (SVA) sites where there is no final demand present.
Ofgem has therefore approved the BSC modification P395, which was proposed by Centrica in November 2019 and will extend the exemption to Central Volume Allocation sites and “complicated” SVA sites where storage is co-located with final demand.
The regulator said the modification will enable electricity imported by generators and storage facilities for generation activities to be identified and excluded from the calculation of final consumption levies.
The change will come into effect on 2 November 2023.
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