Exempt Supply has changed. Here’s what it means for you.

At tem, we’ve always worked to make the energy system fairer and easier to navigate for our customers – and one way we’ve done that is through Exempt Supply.

Exempt Supply is a government scheme that helps renewable generators earn more, and helps businesses save, by cutting out some of the extra costs usually added to energy bills.

Although the scheme has technically been around for nearly two decades, it’s been heavily underused – mainly because it’s been complex, confusing, and hard to access.

We set out to change that.

Over the past year, we’ve taken on the work of applying for Exempt Supply on behalf of eligible RED customers – handling the admin, reading the small print, and managing the back-and-forth with regulators.

In fact, we were one of the first in the UK to submit a large batch of Exempt Supply applications, helping to bring this benefit to market at scale.

Now, with a regulatory update called P442, the system is evolving – and we’re here to break down what’s changing and how it affects you.

So what’s changed, why does it matter, and what’s tem doing about it?

How does Exempt Supply work again?

At its core, the Exempt Supply scheme links a generator’s electricity directly to one or more UK businesses. Because of this is a direct link; certain charges, known as Non-Commodity Costs (things like grid fees and supplier overheads), can be removed from the transaction.

For generators, that means higher earnings per MWh of renewable energy produced. For businesses, it means extra savings on the energy they use.

It's a win-win model, and when managed properly behind the scenes, it requires little to no effort from either side.

So what’s changed?

In July 2025, a regulatory update called P442 came into effect. It replaces the old, manual process for managing Exempt Supply with a more structured system.

Instead of working directly with Elexon (the body that oversees electricity settlements), the new process now involves a specialist third party called an Exempt Supply Notification Agent (ESNA). They’re responsible for checking the data, matching energy generation with usage, and reporting it in line with the new rules.

To make sure everything continues smoothly for our customers at tem, we’ve teamed up with trusted, qualified ESNA partners to keep things running under this new system.

What does this mean for you?

• If you’re already benefiting from Exempt Supply with tem: Nothing changes. You’ll keep seeing those savings or earnings on your invoice – and we’ll continue managing everything behind the scenes.

• If you’re a tem customer who’s not yet on the scheme: We’ll be in touch if and when you become eligible. The switch is simple, and we’ll guide you through it.

• If you’re currently using Exempt Supply with another provider: You’re not locked in. Under the new rules, it’s now easier to transfer the benefit – so if your current provider isn’t delivering the value or service you expected, there’s no reason to stay.

What’s next?

We were one of the first in the UK to roll out Exempt Supply at scale, and now, under the new P442 framework, we’re building on that momentum.

Our goal is to open this benefit up to more generators and businesses – helping generators earn more from their output and helping businesses unlock savings they may not have known were possible.

As the new system evolves, we’ll keep working with industry bodies and partners to make the process clearer, smoother, and more accessible for everyone.

The bigger picture

Exempt Supply is a powerful addition to the way we help tem customers get more from their energy – but it’s just one part of the story.

Our customers are powered by RED, a modern utility experience that connects UK businesses directly with renewable generators. By cutting out wholesale markups, RED delivers better returns for generators, fairer prices for businesses, and full transparency for everyone involved.

So far, RED has returned over £20,000,000 in value to over 2,000 customers – and we’re only getting started.

Want to see what RED could do for your business or generation asset?

Find out how much you could earn or save with RED.