From April 2025 consumption, there will be a new cost on customer 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).
What is the EII Levy/NCCS?
The NCCS 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
How Will It Impact Consumers?
For consumers, the NCC levy will be billed as a consumption-based rate with actuals updated every month. However, EII customers won’t have to pay this levy as they are exempt.
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
