Gas shipper obligation (GSO)

From January 2025 to April 2025, the GSO proposal was open for consultation (shipper in this context refer to gas TSOs). The GSO is intended to be the long-term funding mechanism for initial hydrogen production projects. It may also fund further hydrogen projects, subject to future decisions on the hydrogen programme and its funding arrangements. Prior to the GSO’s implementation, HPBM payments are intended to initially be funded by the government. The GSO will initially be placed on licensed gas shippers in Great Britain only. The government may consider the potential expansion of the GSO to NI gas suppliers in the future, subject to further engagement with relevant stakeholders and decisions on the funding of future hydrogen projects. The GSO is expected to be introduced in 2027, subject to legislation being in place. The government estimates that about GBP 150 million per year will be needed to fund HAR1 projects from 2028. This could result in a price premium of up to 2% for non-domestic gas users from 2028 to 2037 and GBP 2.6-4.5 per year for a typical household. This assumes passing 100% of the cost to customers

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