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Gas and Electricity Markets Authority

Volume 475: debated on Monday 28 April 2008

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what financial contributions energy suppliers make to Ofgem. (200317)

Under a Standard Licence Condition, licence fees are collected from the network businesses that hold the following types of licence:

gas transportation

electricity transportation (where the relevant condition is in force)

electricity distribution.

Costs to be recovered by Ofgem are calculated on the basis of a customer numbers formula. For 2007-08, £35.1 million was collected in licence fees to cover Ofgem-related expenditure.