UK non-commodity charge · Taxes and levies · Gas
Green Gas Levy
Latest published rate, who sets it, and where it is forecast to go.
What Green Gas Levy is, who sets the rate, what the revenue funds and where it is heading. Rates come from the Purely Energy non-commodity cost data hub; forecasts are our own.
Green Gas Levy: what it is, who charges it, and what it pays for
What it is
The Green Gas Levy charge in plain English
Levy on licensed gas suppliers that funds the Green Gas Support Scheme, which pays biomethane producers to inject renewable gas into the grid. It is set by Ofgem as a fixed pence-per-meter-point-per-day rate for each scheme year from 1 April, so the cost per kWh is lower for larger sites because the same fixed amount is spread over more units.
Introduced 2021 (Green Gas Support Scheme regulations).
Who charges it
The body that sets the rate
Ofgem (annual determination)
Unit
£/meter/year
Applies to
All gas supplies, charged per meter point
What it pays for
Where the revenue ends up
Biomethane production and injection, decarbonising the gas grid
Published rate history
| Financial year | Rate | Year on year | Source |
|---|---|---|---|
| 2021/22 | 0.0620£/meter/year | - | Published |
| 2022/23 | 0.2650£/meter/year | +327.4% | Published |
| 2023/24 | 0.2530£/meter/year | -4.5% | Published |
| 2024/25 | 0.3800£/meter/year | +50.2% | Published |
| 2025/26 | 3.000£/meter/year | +689.5% | Published |
| 2026/27 | 3.820£/meter/year | +27.3% | Published |
Forecast trajectory
Forecasts from our non-commodity cost model. P10, P50 and P90 are the 10th, 50th and 90th percentile outcomes; P50 is the central estimate.
| Year | P10 | P50 | P90 | Confidence | Rationale |
|---|---|---|---|---|---|
| 2024-25 | 0.9300 | 0.9300 | 0.9300 | high | Current confirmed rate from Ofgem Q3 2024 statement |
| 2025-26 | 0.7500 | 0.8900 | 1.050 | med | Based on current scheme trajectory and capacity auction results |
| 2026-27 | 1.200 | 1.500 | 1.900 | med | First full year impact of 2025 capacity additions |
| 2027 | - | 4.200 | - | - | |
| 2027-28 | 1.500 | 2.000 | 2.700 | low | Scheme approaching peak deployment with declining gas consumption |
| 2028 | - | 4.500 | - | - | |
| 2028-29 | 1.800 | 2.500 | 3.500 | low | Full scheme capacity operational, maximum support obligations |
| 2029 | - | 4.800 | - | - | |
| 2029-30 | 2.000 | 3.000 | 4.500 | low | Continued gas demand decline with fixed support obligations |
| 2030 | - | 5.100 | - | - | |
| 2030-31 | 2.200 | 3.500 | 5.500 | low | Accelerating per-unit rates due to shrinking consumption base |
| 2031 | - | 5.202 | - | - | |
| 2031-32 | 0 | 1.844 | 8.000 | low | Post-2030 policy vacuum creates binary outcomes |
| 2032 | - | 5.306 | - | - | |
| 2033 | - | 5.412 | - | - | |
| 2034 | - | 5.520 | - | - | |
| 2034-35 | 0 | 1.046 | 10.850 | low | Speculative projection without concrete policy signals |
Green Gas Levy FAQs
What is the Green Gas Levy charge?
Levy on licensed gas suppliers that funds the Green Gas Support Scheme, which pays biomethane producers to inject renewable gas into the grid. It is set by Ofgem as a fixed pence-per-meter-point-per-day rate for each scheme year from 1 April, so the cost per kWh is lower for larger sites because the same fixed amount is spread over more units.
Who sets the Green Gas Levy rate?
The Green Gas Levy rate is set by Ofgem (annual determination).
What does Green Gas Levy pay for?
Green Gas Levy revenue supports Biomethane production and injection, decarbonising the gas grid.
What is the latest published Green Gas Levy rate?
For 2026/27, the published Green Gas Levy rate is 3.820 £/meter/year.
What is the Green Gas Levy forecast?
Our latest forecast for 2027-28 is 2.000 £/meter/year (low confidence). Scheme approaching peak deployment with declining gas consumption
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Rate data from the Purely Energy non-commodity cost data hub (dh.purelyenergy.co.uk). Published rates come from statutory publications by the body listed above; forecasts are modelled from published guidance and market trends, so treat P50 as a central estimate and use P10/P90 for sensitivity. Primary source