P442 Licence Exempt Supply

Lower electricity costs by accessing half-hourly matched renewable power from approved independent generators.

P442 is a market framework that makes it simpler for renewable generators to supply electricity directly to organisations without operating under a full supply licence.

P442 enables eligible renewable power to bypass certain non-energy charges, allowing the financial benefits of that power to be passed through to you. This means you benefit from lower electricity costs through a transparent process that ensures a fair share of benefits.

Zenergi has partnered with a select number of approved suppliers that analyse your half-hourly data to identify a match between when your organisation uses electricity and a generator generates power. When a half-hourly match is identified, the ‘linked’ generation is exempt from certain non-commodity charges. These savings are split between you, the generator and the supplier.

  • Lower electricity costs

  • Improved value for the renewable generator on their output

  • Linked renewable power avoids key non‑commodity charges

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P442 in practice

Small-scale generation (<5MW) is treated as ‘licence exempt’, which means the generators are excluded from paying licenced non-commodity charges, such as Contracts for Difference (CfD), Feed-in Tariff (FiT), Renewables Obligation (RO), and Capacity Market (CM).

A modification (P442) implemented in the electricity code has made the process of managing exempt supply much simpler.

Under the P442 framework, eligible renewable generation can be allocated where a match is identified between when an eligible organisation uses electricity and a generator generates power.

When that allocation is approved, generators and organisations operate within a formal P442 scheme and certain non-commodity costs are reduced on the portion of electricity linked to that generator.

Not available on non-half-hourly contracts or to organisations that receive levy discounts or exemptions via the Energy Intensive Industries (EII) or Climate Change Agreements (CCA) schemes. Only available on fixed price contracts.

 

Key features and benefits

Shared savings

Approved suppliers identify a match between when your organisation uses electricity and a generator generates power, delivering an exemption from certain non-commodity charges on the ‘linked generation’ which are split between you, the generator and the supplier.

Lower energy costs

Your linked renewable power avoids key non‑commodity charges, delivering savings of around 5–6 p/kWh on the portion of electricity matched to licence‑exempt generation.

Delivering value

Delivers reduced charges for your organisation on the eligible volume and improved value for the generator on their output.

Supporting a sustainable and decentralised energy system

Simplifies the process for smaller generators (such as sub-5MW hydro or solar) to sell directly to local users.

Eligibility

Available to all half-hourly clients on fixed price contracts – no minimum threshold applies.

Half-hourly matching

Verify that your energy consumption aligns precisely with renewable generation periods through “timestamped” or “time-matched” supply.

Why choose Zenergi’s P442 Licence Exempt Supply solution?

Zenergi helps organisations access the cost-saving benefits of P442 Licence Exempt Supply through specialist energy expertise, trusted supplier partnerships, and a straightforward implementation process. We assess your eligibility, identify suitable opportunities through approved suppliers, and provide clear visibility of the savings generated through half-hourly renewable matching, helping you reduce electricity costs while supporting independent renewable generation.

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Want to explore what you can save on your electricity with P442?

Speak to our team to assess your eligibility, explore potential savings, and access approved renewable generation matching opportunities.

Get started
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