Elexon confirms interim exempt supply process closes 31 October 2026 as four ESNAs take over

No material delta versus the prior event state: the Elexon notice dated 1 September 2026 remains the sole basis for the record, confirming that the interim exempt supply process will close to existing users on 31 October 2026 following an August 2026 BSC Panel decision. The source restates that four Exempt Supply Notification Agents are now operating and provide an enduring, code-governed process with greater transparency of exempt supply volumes than the interim arrangements, that the interim workaround dates from the Panel's 2018 approval of Supplier Volume Allocation Group (SVG) determination of exempt supply volumes, and that Modification P442 'Reporting to EMRS of chargeable volumes for SVA Metering Systems that record both exempt and licensed supply' was implemented in February 2025 to create the ESNA role. The only refinement is confirmation of the 31 October 2026 closure date and the February 2025 P442 implementation month.

Exempt supply volumes set the chargeable base for Capacity Market and Contracts for Difference levies: licensed Suppliers pay on total supply minus exempt supply, while licence-exempt Suppliers (private wire networks, small Suppliers, Suppliers of offshore facilities) pay no levies at all. Because licence-exempt Suppliers are not recognised as market participants by many code bodies and must contract licensed Suppliers to register Metering Systems and interact with Settlement, licensed Suppliers' metered consumption data can mix licensed and exempt supply. Routing all such determinations through ESNAs, whose calculations are submitted to BSC Central Systems and reported to EMRS, makes levy cost allocation across GB suppliers — and ultimately consumers — more auditable and transparent.

Read as the closing administrative step of a settlement governance clean-up rather than a change to market incentives, this consolidates exempt/licensed volume determination onto a single code-governed path. The 2018 SVG workaround operated outside normal BSC processes; with four ESNAs live since P442's February 2025 implementation, maintaining a parallel discretionary route appears to have offered duplication without transparency benefit. The practical exposure sits with licensed Suppliers still relying on the interim route for SVA Metering Systems recording both exempt and licensed supply — absent onboarding with an ESNA before the deadline, their metered volumes would plausibly fall to be treated as chargeable for CM and CfD levies. Two questions seem worth monitoring: whether four ESNAs give adequate choice and coverage for private wire and offshore-facility configurations, and whether the enduring process shifts reported exempt volumes enough to move levy incidence between suppliers. The notice sets out no transitional derogations, which suggests the date is firm.

GB Balancing and Settlement Code (BSC), Modification P442; electricity supply licence exemptions under GB legislation (class and individual exemptions); Capacity Market and Contracts for Difference levy arrangements administered via EMRS

Interim exempt supply process closes to existing users · 31 Oct 2026

Primary sources