BEIS has announced a call for evidence on how the current electricity licence exemptions work. Burges Salmon has been calling for this for some time along with many others in the sector.
Anyone who has dealings with these exemptions knows how complicated they are and how unwittingly organisations can find themselves in breach of law. Those involved in the electricity sector will need to watch developments very carefully. You may be planning schemes based on the current regulations and those that have taken advantage of exemptions, may find the landscape changes.
The reasons given for the review are;
- a recognition that the wider energy market has developed since the legislation underlying the exemptions regime came into effect. For example, there is now much more decentralised, low carbon energy and there is likely to be more in the future.
- new organisations offering energy flexibility services to consumers and businesses, through electricity storage and growing numbers of smart appliances and electric vehicles, will form a key part of the energy system. The review will therefore identify whether changes are needed to ensure the exemptions regime functions appropriately for current and future energy markets.
- Net Zero and
- ensuring all market participants pay their fair share of policy and network costs.
This last one in particular could contain a sting in the tail for many and will mean it is well worth making sure your views are taken into account.
If you need assistance on any licence exemptions matter get in touch with the energy regulatory team at Burges Salmon.
Exemptions from the Requirement for an Electricity Licence Call for Evidence Closing date: 1 March 2021