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OFGEM

Network Charge Deferral update

In June 2020, Ofgem outlined support we expected to be available to energy suppliers and shippers who are facing cash flow challenges as a result of the unprecedented public health emergency triggered by COVID-19.

Network companies have to provide relief to cash flow-constrained suppliers and shippers by enabling them to defer up to three months’ of charges relating to gas transportation, electricity distribution and electricity transmission. The development and management of the schemes has involved the Energy Networks Association (ENA) and the Joint Office of Gas Transporters.

We understand from our ongoing discussions with stakeholders that there is an interest in the level of uptake of the schemes to date.

Up to end August 2020, 18 firms have deferred charges under at least one of the three schemes, worth a total of around £58m. The firms are required to repay these charges in full by March 2021.

We will publish final figures for take-up of the three schemes in October when they are all closed to new applicants.