P446 ‘Domestic Energy Price Guarantee Scheme’
Formal title: Energy Price Guarantee Scheme for domestic customers
This Modification seeks to enable Elexon (BSCCo) to implement and administer the payment scheme for Suppliers as part of the Government’s Energy Price Guarantee scheme for domestic electricity customers. The intention of the subsidy would be to reduce consumer tariffs in light of the recent rises in energy costs.
European energy prices have increased dramatically, following the ending of lockdown and the gas crisis initiated by Russia’s invasion of Ukraine. Further rises are expected in the future and, as we approach winter, there are concerns over the wellbeing of those who may not be able to afford energy costs. The increase in wholesale energy costs could also have wider economic impacts, such as the impact on inflation. It is also possible that the increased energy costs could cause further Supplier failures.
As a result of these concerns the Government has proposed the Energy Price Guarantee (EPG) Scheme for domestic customers, to secure reductions in the electricity bills of domestic consumers in Great Britain. The intention is for Elexon to act as the EPG Scheme Administrator.
The activities that Elexon are permitted to undertake are outlined in BSC Section C ‘BSCCo and its Subsidiaries’. Currently, the activities stipulated in BSC Section C do not include provisions for administering such a scheme. The proposed solution is to make changes to BSC Section C to extend the vires for Elexon. The amendment would have to allow Elexon to undertake a new non-settlement related function, administering the payment scheme.