Consultation on a Green Gas Levy

Overview

Heating of homes, businesses and industry is responsible for a third of the UK’s greenhouse gas emissions, making the decarbonisation of heat one of the biggest challenges we face in meeting our climate targets.  

The Green Gas Levy, announced in the March 2020 Budget, will fund support for biomethane injection into the gas grid through the new Green Gas Support Scheme. Proposals for this scheme were set out in the April 2020 consultation Future Support for Low Carbon Heat.

In this consultation, we are seeking views on policy options for the Green Gas Levy.

This consultation sets out: 

• Proposals for the design of the Green Gas Levy.
• Proposals for the budget control and financial management of the Green Gas Levy. 
• Explanation of the impact on gas bills for domestic and non-domestic customers.
• Proposals regarding the administration, compliance, and enforcement of the scheme.
• Proposals for how payments will be made on the Green Gas Support Scheme ahead of the first Green Gas Levy collection.
• Proposals for a future transition to a volumetric approach to the design of the Green Gas Levy.

We are working with devolved administrations with the aim to implement these proposals across Great Britain. 

Read the consultation document

We will publish the Impact Assessment to accompany these proposals within three weeks of the consultation launch date.

Consultation Workshops

We will hold workshops in mid-October on the design of the levy. These will primarily be of interest to gas suppliers but are open to everyone. Space will be limited to one person per organisation.