What is the Green Gas Levy?
The Green Gas Levy is designed to make energy efficiency schemes encourage the generation of eco-friendly gas. It mandates gas suppliers to purchase a specific quantity of green gas and imposes a levy on those who fail to meet this requirement.
This levy is a vital component of the government’s initiatives to diminish greenhouse gas emissions and shift toward a low-carbon, renewable energy, system. The revenue generated from the levy goes to support the production of green gas, particularly biomethane from sustainable sources, through grants provided by the Green Gas Support Scheme (GGSS).
The funds collected through the Green Gas Levy are disbursed to GGSS participants based on the amount of eligible biomethane they introduce into the gas network. Additionally, the levy covers Ofgem’s administrative expenses associated with managing the scheme.
The annual levy rate is determined by the Secretary of State for Business, Energy, and Industrial Strategy, and the scheme’s operational year extends from April 1 to March 31.