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Decision on clarifying the regulatory framework for electricity storage: changes to the electricity generation licence

We seek to provide regulatory clarity on the treatment of electricity storage within the regulatory framework. To achieve this, we consulted on changes to the electricity generation licence to make it fit for storage.

We consulted on changes to the electricity generation licence in July 2019.

Further to the responses we received to our statutory consultation, we have decided to proceed with changes to the electricity generation licence to:

  • include a definition of ‘electricity storage’ and ‘electricity storage facility’ in the electricity generation licence; and
  • introduce a new licence condition E1 into the generation licence only applicable to generation licence holders that operate/own storage. This condition would require the licensee to provide accurate information regarding their electricity storage facility to their relevant suppliers. The purpose of the condition is to facilitate the correct identification of facilities operating under licence as electricity storage, the correct calculation of relevant charges by suppliers and ensure that suppliers are able to report accurately against their own obligations.

These changes will ensure that in the licensing regime electricity storage is subject to the same rules and regulations than other forms of generation; and they will address current issues storage providers face surrounding final consumption levies (where some providers currently face double-charging of such levies).