Government gives suppliers relief on CfD payments


Government has confirmed it will give suppliers temporary relief on increases in contracts for difference (CfDs) charges.

In a consultation last month, Beis proposed delaying up to 67 per cent of the increases until next year. But it has upped that to 80 per cent, with relief capped at £100m.

The decision comes as suppliers – like many UK firms – are struggling with cashflow as business customers mothball operations and hoard cash.

Beis’s move comes after Ofgem handed suppliers a £350m bailout in the form of deferred network charges.

Meanwhile, SSE has raised a code modification to defer until £500m in extra balancing costs as a result of Covid-19 demand destruction and subsequent actions required to keep the system stable.

Parliamentary approval to enact the CfD relief is expected before 9 July.

Details here.

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