Tender for the provision of Licence Lite Generation Capacity (II)

In March 2013 the GLA applied to Ofgem for a junior electricity supply licence, known as Licence Lite, on the basis of the GLA as licensee being relieved of its obligation to be a party to the relevant industry codes, as described below. A condition of the GLA being eligible to be granted a licence without being a party to the codes is that a licensed electricity supplier who is a party to the codes provides to the GLA certain services to enable the GLA to operate as a licensed supplier.

A Third Party Licensed Supplier has now been appointed. The next stage of the project is for the Greater London Authority (GLA) to be granted a junior electricity supply licence (‘licence lite’) in order to enable it to purchase electricity from small scale electricity generating operations and supply selected commercial and public sector consumers within London. The GLA’s objective is that by this means it will facilitate decentralised energy generators in London in obtaining a better price for the electricity they export, rather than relying upon power purchase agreements entered into in the usual way.