Ofgem uses the Maximum Resale Price (MRP) regulations to cap the price at which gas and electricity can be resold. To ensure MRP did not the impede the take up of electric cars, an exemption from MRP on the resale of electricity via EV charging points was introduced in 2014. Yet, despite the emerging market in hybrid and fully electric boats, no such encouragement has yet been afforded to the marine sector.
This is why British Marine has been calling for a change and why we welcome Ofgem’s decision to now review how MRP affects investment in marine charging infrastructure. Currently there is no incentive for marinas to invest because, whilst they can recover installation costs, MRP prevents them from making any profit. MRP regulations are deterring investment and slowing down our sector’s transition to net zero.
UK’s Climate Change Committee and others acknowledge that both biofuels and electrification are key to the successful decarbonisation of leisure marine. The continual growth in hybrid and electric propelled boats will largely depend on continued advances in battery technologies and having in place the right charging infrastructure. To hasten this trend, leisure marinas must be permitted to make a reasonable return on the significant investment needed for future charging infrastructure.
British Marine welcomes Ofgem’s review of the MRP regulations and urges members to respond to its Call for Input before it closes on 4 December. Ofgem poses a number of questions, including the following that specifically relate to our industry:
In addition to its Call for Input, Ofgem is holding further discussions with British Marine and other marine representatives on 20 November. If you wish to inform our conversations with Ofgem please contact our External Affairs Manager, Joanna Richardon on email jrichardson@britishmarine.co.uk as soon as possible.