This article was first published in October 2023 and updated in August 2024.
The Network Charging Compensation (NCC) scheme was announced in February 2023, as part of the “British Industry Supercharger” – a package of measures aimed at making Britain’s strategic energy intensive industries more competitive. We now have some more details on how the NCC scheme will work. Julie Sleightholme, Training & Bureau Quality Manager at Sustainable Energy First explains.
What is the NCC scheme?
The NCC will provide eligible energy intensive businesses (EIIs) with compensation on their network charging costs.
This will be by providing a discount of up to 60% on the following electricity networks costs:
- Transmission Use of System (TNUoS)
- Distribution Use of System (DUoS)
- Balancing Services Use of System (BSUoS)
How does the NCC work?
The NCC discount will be applicable from 1 April 2024, however supplier invoices will still contain the usual network charges. Instead the compensation will be a rebate that has to be applied for and will be issued in arrears via a bank refund from Elexon.
A new “EII Support Levy” (ESL) will be introduced to fund this, which will be paid by non-energy intensive businesses on supplier invoices. Suppliers are expected to be notified of the cost of the scheme in April 2025 for the previous year. The amount each supplier pays will be determined by their market share.
Am I eligible for the NCC discount?
If you currently receive the Energy Intensive Industries (EII) discount (currently 100% discount on FiT, RO, CfD & CM) then you will hold an EII Certificate and will also be eligible for the NCC discount.
Any customer who holds an EII Certificate for the whole of any month may apply for NCC compensation.
How to apply for the NCC
As explained above, compensation isn’t automatically given. Applications need to made via the Elexon NCC portal. If you need help with this, get in touch with Sustainable Energy First’s Revenue Recovery team for support. We can help you to register and submit claims for compensation.
Claims are submitted quarterly detailing the net cost (network charges incurred- TNUoS, DUoS & BSUoS) and evidence is uploaded (EII certificate & invoices/projected costs). They must be submitted within a month of each quarter ending.
When will I receive compensation?
The NCC discount will be applicable from April 2024, but compensation payments for eligible EIIs will begin in May 2025. Refunds will be issued via a direct bank transfer to the company.
The Elexon website contains more information about how to register for the scheme.
