Government response to CFD supplier obligation: consultation on improving efficiency and transparency

In September 2015, the government issued a consultation that proposed a series of technical amendments to the CFD supplier obligation with the aim of reducing costs to consumers by:

  •  Improving the efficiency of the design of the supplier obligation through changes to the calculation and timing of payments to and from suppliers; and
  • Improving transparency over future CFD costs, to minimise risks to suppliers and reduce consumer bills.

On Monday 25 January 2016, DECC published the response to that consultation, summarising the responses that have been received, and setting out the policy decision and next steps. The associated regulations and impact assessment have been laid before Parliament alongside publication of this government response and will soon be available on the legislation.gov.uk website.

If you have any queries on the consultation and this government response please contact Carly Leighton by emailing [email protected]