Green Gas Levy (GGL): rates, underlying variables, mutualisation threshold and de minimis for the 2024-2025 financial year
Updated 20 December 2024
Applies to England, Scotland and Wales
The Department for Energy Security and Net Zero (DESNZ) has a regulatory duty under to publish the Green Gas Levy (GGL) rate for each scheme year (beginning 1 April) by 31 December of the preceding year.
GGL聽levy rates
罢丑别听GGL聽levy rate for the 2024-2025 scheme year (1 April 2024 to 31 March 2025):
- 0.105p per meter per day, equivalent to 38p per meter over the financial year
Underlying variables
In line with the regulations, the 2024-2025 levy rate has been calculated based on the following variables:
Variable | |
---|---|
A 鈥� Adjustment factor | 1.00752 |
SB 鈥� Projected scheme expenditure* | 拢54,615,635 |
SD 鈥� Forecast scheme year end surplus | 拢9,633,383 |
AA 鈥� Ofgem鈥檚 total forecasted administration costs | 拢3,460,000 |
TY 鈥� True-up from scheme year before last | 拢557,274 |
TD 鈥� Year end deficit from scheme year before last | -听拢50,182,660 |
QL 鈥� Quarterly lag uplift | 拢9,430,870 |
H - Headroom | 拢1,448,709 |
I 鈥� Interest accrued on levy funds held in Ofgem bank account | 拢424 |
Ofgem鈥檚 estimated administration costs for carrying out a mutualisation process** | 拢11,393 |
*This corresponds to the聽GGSS聽Overall Scheme Expenditure Budget, published on the聽GGSS: Budget Management page.
**Note that Ofgem鈥檚 administration costs for carrying out the mutualisation process is the same value as the mutualisation threshold.
Mutualisation threshold
The mutualisation threshold is any levy shortfall above 拢11,393.
De minimis
A de minimis for the GGL was introduced on 1 December 2023 through the .
Obligations for some payments and provision of credit cover for amounts under the de minimis are automatically disapplied. The provision also suspends some of Ofgem鈥檚 notification obligations relating to payments below the de minimis level.
The de minimis applies to quarterly levy payments, credit cover requirements, distribution of interest on levy credit payments, repayment of levy credit payments, backdated levy payments for formerly provisionally exempt suppliers, payments due to or from a former scheme supplier, and mutualisation payments.
The de minimis for a scheme year is announced by the preceding 31 December and is subject to a statutory maximum level of 拢200, which will increase for future years by Consumer Price Index inflation.
The GGL de minimis for 2024-2025 is 拢50.