Introduction of a Network Charging Compensation (NCC) scheme allowance in the energy price cap decision

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Outlines our decision to include an additional allowance for the Network Charging Compensation (NCC) Scheme.

We published a statutory consultation on 12 December 2024 setting out proposals to amend the price cap methodology to include an additional allowance for the Network Charging Compensation (NCC) Scheme. 

The allowance will fund the Energy Intensive Industry (EII) Support Levy. The NCC Scheme is a new government scheme which electricity suppliers are expected to pay into from April 2025. 

Our decision 

We have decided to introduce an NCC Scheme allowance in the energy price cap from 1 April 2025. The decision also sets out the associated methodology for calculating the allowance. This will ensure default customers pay no more than the efficient costs incurred by suppliers in funding the NCC scheme.

Main document

[Introducing an additional allowance for the Network Compensation (NCC) Scheme decision [PDF, 342.42KB]

](https://www.ofgem.gov.uk/sites/default/files/2025-02/Decision-on-the-introduction-of-a-Network-Charging-Compensation-%28NCC%29-Scheme-Allowance-in-the-energy-price-cap.pdf)

Subsidiary documents

[Policy cost allowance methodology (Annex 4) [XLSX, 448.63KB]

](https://www.ofgem.gov.uk/sites/default/files/2025-02/Annex-4-Policy-cost-allowance-methodology-v1.20.xlsx)

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