BE23169 -Industrial Decarbonisation and Hydrogen Revenue Support (IDHRS) Hydrogen Funding Technical Services

Description

**Please note this is an award notice, not a competition. This contract
has been awarded via the Crown Commercial Services - RM6126 - Research and Insights .**

The Department for Energy Security and Net Zero has a requirement to appoint a supplier to support the delivery of our hydrogen ambitions. The Government has developed the Low Carbon Hydrogen Agreement (LCHA). The LCHA is designed to enable hydrogen producers to overcome the operating cost gap between low carbon hydrogen and fossil fuels and provide investors with a return on the capital they invest in projects. This will help to kickstart the hydrogen economy and therefore play a vital role in achieving the government's ambitions on energy security, industrial competitiveness, jobs and growth, and Net Zero.

Aims & Objectives 
The main objective is to provide crucial support to the Industrial Decarbonisation and Hydrogen Revenue Support (IDHRS) policy team, who lead on the potential gas shipper levy design, with specialised knowledge of the gas market, business models, and levy policy design. To provide technical advisory services with experts using their understanding of the gas market and industry on a continuous need basis throughout the contract to primarily answer the following questions: 

How should the levy be designed to operate most effectively? 

How do we ensure that any levy accurately reflects scheme costs, ensuring that budget deficits are avoided, while surpluses and outstanding cash balances are minimised?

How can we ensure that the levy is designed to create only reasonable and proportionate impacts on consumers, e.g. gas intensive and fuel poor users, as well as any other at risk groups?

How can lessons learnt from the development of the Green Gas Levy (GGL), and the Supplier Obligation (SO), as well as other relevant government schemes, be utilised?