This webpage aims to support Suppliers in understanding the charges they will need to pay and how these are calculated to fund the Network Charging Compensation scheme (NCC).
Supplier Payments
These are the charges Suppliers will incur on a monthly basis:
- EII Levy Payments – is the total amount of all of the sums determined for the associated claim month: This includes application, corrections to application and any dispute determinations.
- NCC Operational costs – is the EII Support Payments Administrator’s costs, and this includes establishing and operating processes.
- Reserve Fund – is an amount that is twice the amount likely to be equal to the largest EII Support Payment Total to occur in the following 12 months. The Reserve Fund is initially accumulated over 12 months from Suppliers.
The amount each Supplier pays will be determined by their market share, generating funds used to compensate Energy Intensive Industries (EIIs) for the cost of their network charges.
This guide steps you through these charges, how they are calculated, what happens if you pay late, who receives the invoice and further supporting information.
When do Suppliers start making payments
Suppliers start making payments from April 2025. We have published a NCC Payment schedule to help Suppliers understand when they will need to make their monthly payment for the associated claim month.
Select the ‘Supplier Invoice tab’ from the schedule and this will provide you with the Levy Month, Claim Month and also when the Estimated Levy Fund will be published. This is aligned with the following dates:
- The ‘Supplier Invoice Date’ is when Elexon will send Suppliers the invoice to fund the NCC scheme.
- The ‘Supplier Invoice Due Date’ is when Suppliers will be required to make payment (e.g. Levy payment obligation). It is five working days after the Supplier Invoice Date.
How much are these charges?
We have captured the annual charges for the NCC Operational costs and the Reserve Fund that will be charged from April 2025 for the first year.
The annual Operational costs are as follows:
| Period | Amount (£)** |
| 1 April 2025 to 31 March 2026 | £749,337.20 |
| 1 April 2025 to 31 August 2025* | £1,250,000.00 |
*this is the recovery of implementation costs for the scheme which will be collected across the first five months.
The Operational costs are estimated before the first invoice run of every financial year (April). These may be subject to change throughout the year as true costs are realised. Any changes in the Operational Costs will be communicated with Suppliers.
The Reserve Fund has been has been calculated and confirmed as the following:
| Period | Amount (£)** |
| 1 April 2025 to 31 March 2026 | £38,377,460.34 |
*All values stated are exclusive of VAT.
The table below illustrates the Total EII Levy (across suppliers) for a specified claim month:
| Claim Month | Amount (£)** |
| April 2024 | £15,531,063.13 |
| May 2024 | £16,406,805.71 |
This is the amount to be collected from Suppliers that will be paid out to compensate EIIs for their network changes. In the next section, this highlights the Estimated Levy Fund and what was estimated six months following the EIIs claims being submitted.
Publication of the Estimated Levy Fund
The Estimated Levy Fund is calculated six months following the claim month. This provides an estimate of the monies that will be paid out to compensate EIIs for their network charges.
To view the monthly Estimated Levy Fund please visit this designated webpage:
The EII Levy Payment will be determined when the calculation is performed, though the Estimated Levy Fund provides some insight into what this charge.
Further information
You can watch a recording of our webinar, which covered numerous topics including a progress update, EII application process, application evidence, Estimated Levy Fund, Supplier payments and Elexon Support.
You can also download the presentation slides, and the questions raised during the webinar.
Information for Energy Intensive Industries (EIIs)
If you would like to understand more about the registration and application process for EIIs, please visit this webpage.
Enquiries
For all enquiries regarding this scheme, please use Elexon Support.
You will need to register with Elexon Support ahead of submitting an enquiry. By registering an account, you will receive email updates on the progress of your case and can view and track other cases you submit. This also provides a historical view of the cases raised.