UK Government invites comments on RCM’s levy design

The UK’s Department for Transport (DfT) has invited comments on the design of levy under the revenue certainty mechanism (RCM).

The government had earlier confirmed that industry should fund the revenue certainty mechanism through a variable levy on aviation fuel suppliers. This consultation seeks views on specific design features of the aviation fuel supplier levy, which will fund the sustainable aviation fuel (SAF) revenue certainty mechanism.

The design features of the levy include its calculation methodology, length, frequency and sequence of when the levy is calculated, collected and paid, use of forecasts to provide certainty for industry and actions to address over-collection, surpluses and under-collection of the levy.

“The purpose of this consultation is to set out DfT’s proposals and potential options regarding the design of the Aviation Fuel Supplier Levy and gather feedback from a range of stakeholders, including aviation fuel suppliers, airports, and airlines,” according to the levy design documents shared by the DfT.

The levy also includes the impact of the enforcement on the customers.