What is the NCC Levy?

What is the NCC Levy?

The NCCS (Network Charging Compensation Scheme) is a government scheme which compensates EIIs for up to 60% of their network charges, including Transmission Network, Distribution Network and Balancing Services Use of System charges.

NCCS is part of a wider initiative known as the British Industry Supercharger which also includes relief from Feed-in-Tariff and Capacity Market charges for EIIs.

You can read more about the British Industry Supercharger here:

British Industry Supercharger gives huge boost to UK businesses – GOV.UK

Elexon is the NCCS scheme administrator and you can also find more details about the NCCS and how it operates on their website:

Network Charging Compensation Scheme – Elexon

What has changed since the scheme was announced?

In July 2025, the government opened a consultation for the EII discount to increase from the originally announced 60% to 90%. The decision was made on the 31^st October 2025 and the increase to 90% will take affect from 1 April 2026. You can read about this change here Proposed uplift to the Network Charging Compensation Scheme for energy intensive industries (EIIs): government consultation response – GOV.UK

How will it impact customers?

From April 2025, there will be a new cost on customers invoices called the Network Charging Compensation (NCC) levy. This levy will be applied to electricity bills and will fund the government’s Network Charging Compensation Scheme (NCCS) for Energy Intensive Industries (EIIs).

On consumption invoices there is a new cost for the NCC levy within the Other Charges and Adjustments section, and customers will continue to see these charges going forward.

There will be a forecasted charge for the consumption period they are in, this will be reconciled the following year. In addition, there will be an actual monthly cost for April 2024-March 2025 consumption. The actual monthly cost will be billed at revised NBP volumes for the respective consumption period. We receive invoices of actual costs from Elexon approximately one month in advance for the previous years’ consumption.

You can see below the actual costs we have received to date for each month from April 2024 consumption onwards. We will continue to update these monthly in 2025 as we receive the actual costs from Elexon.

How does the NCC affect us if we are an EII customer?

If you are an EII customer and hold a valid EII exemption certificate, you won’t have to pay this levy.

We hope you find this summary clear, but if you have any questions, please contact our customer service team 0800 130 3600 or email support.customerservice.uk@engie.com