This consultation is particularly significant for boatyards and marinas as it directly impacts their ability to make the necessary, large-scale investments in new electrical infrastructure required for the widespread adoption of electric and hybrid propulsion systems for future net-zero targets.
The MRP is a rule that generally prevents the resale of energy for more than the price originally paid to the supplier. While designed to protect domestic consumers from overcharging (such as by landlords), its strict application can present a major barrier to investment in new charging infrastructure, which is vital for the maritime sector's transition to net-zero.
The latest Call for Input explicitly seeks evidence and insights on how the current MRP rules affect investment in low-carbon infrastructure and following the publication of the British Marine Industry Priorities 2024 – 2029 document and strong lobbying of government over the last 2 years, including meetings with the past 3 Maritime Ministers, specifically mentions marine craft as a key area of focus.
The UK has committed to decarbonisation of its domestic maritime sector, with ambitious targets that require a fundamental shift away from fossil fuels. For leisure and commercial vessels, this includes technologies such as hybrid and electric propulsion systems.
Boat yards and marinas must prepare for this transition by upgrading their electrical supplies—an expensive undertaking that may include:
If marina operators are legally restricted to only charging a direct "cost pass-through" for electricity, it becomes extremely difficult to justify the high upfront capital cost of these infrastructure upgrades, which will require a financial model that recovers investment over time.
The consultation presents a unique opportunity for the marine industry to highlight this issue and argue for a suitable exemption or a practical, tailored pricing model for electricity supplied for vessel propulsion systems in order to support the decarbonisation of the sector.
Industry bodies, boatyard owners, and marina operators are strongly encouraged to provide evidence to Ofgem on:
Failure to secure a favourable change could severely delay the adoption of future propulsion systems, putting the UK's 2050 net-zero targets for the maritime sector at risk. The future of sustainable boating, and the necessary infrastructure that underpins it, hinges on the industry's collective response to this vital government consultation.