Green Gas Levy (GGL): rates and exemptions

The Green Gas Levy (GGL) applies to licensed fossil fuel gas suppliers in Great Britain from 30 November 2021 and will fund the Green Gas Support Scheme (GGSS).

Levy rates

As required by the Green Gas Support Scheme Regulations 2021, we have published:

For subsequent scheme years - 2023/2024 onwards - we will announce the levy rate by 31 December in the preceding year.

The first levy collection will be in the first quarter of the 2022/2023 financial year (April to June 2022).

Exemptions

Exemptions are available to suppliers whose total gas supply for the duration of a scheme year comprises at least 95% certified biomethane. Suppliers seeking this exemption must prove their biomethane supply levels using retired green gas certificates from a scheme on the approved biomethane certification scheme list.

Administration

Ofgem is the scheme administrator. Their website provides further details on the administration of the GGL.

Next steps

The government has committed to transition the GGL from its current meter point design to a volumetric levy as soon as possible, subject to overcoming feasibility issues, so that costs better align with gas consumption. A volumetric levy must be simple to administer and deliver, minimise costs on consumers and take into account the impact on Energy Intensive Industries and other important UK industries. We will consult on any new levy proposals.

Background

The GGSS will help decarbonise our gas supplies by increasing the proportion of green gas in the grid, through support for biomethane injection. This is part of the government's wider strategy to decarbonise heat in buildings, as set out in the October 2021 Heat and buildings strategy.

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