The Fossil Fuel Levy (FFL) is a levy paid by suppliers of
electricity
Electricity is the set of physical phenomena associated with the presence and motion of matter possessing an electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as described by Maxwel ...
from non-
renewable energy
Renewable energy (also called green energy) is energy made from renewable resource, renewable natural resources that are replenished on a human lifetime, human timescale. The most widely used renewable energy types are solar energy, wind pow ...
sources in the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
. The costs are shared by the suppliers and consumers, as a proportion of the cost is passed on to consumers in the cost of the electricity supplied. The Fossil Fuel Levy was imposed to fund the
Non-Fossil Fuel Obligation.
Legislation
In
England
England is a Countries of the United Kingdom, country that is part of the United Kingdom. It is located on the island of Great Britain, of which it covers about 62%, and List of islands of England, more than 100 smaller adjacent islands. It ...
and
Wales
Wales ( ) is a Countries of the United Kingdom, country that is part of the United Kingdom. It is bordered by the Irish Sea to the north and west, England to the England–Wales border, east, the Bristol Channel to the south, and the Celtic ...
the Fossil Fuel Levy was introduced under the
Electricity Act 1989. Section 33 of this Act was briefly superseded by the Fossil Fuel Levy Act 1998 until its repeal (by the
Utilities Act 2000), bringing the FFL back under the Electricity Act.
In
Scotland
Scotland is a Countries of the United Kingdom, country that is part of the United Kingdom. It contains nearly one-third of the United Kingdom's land area, consisting of the northern part of the island of Great Britain and more than 790 adjac ...
, the Fossil Fuel Levy was not imposed until 1996, as support for the nuclear industry in Scotland (the original purpose of the Levy in England and Wales) was provided by the 1990 Scottish 'Nuclear Energy Agreement'.
Rates
The Levy has been applied at various rates, but in recent years has been set at zero as the
Climate Change Levy was introduced. Rates are controlled by
Ofgem.
See also
*
Climate Change Levy
*
Renewables Obligation Certificates
*
Energy policy of the United Kingdom
*
Energy use and conservation in the United Kingdom
External links
Fossil Fuel Levy Act 1998
{{Energy in the United Kingdom, govreg
Fossil fuels in the United Kingdom