Whilst the Government has agreed to contribute £3m per year for five years starting from April 2016 to ensure the OGA is well funded from the outset, the OGA’s ongoing costs will be met by a combination of fees and charges – and a new levy on industry.
The levy will be charged from October this year.
Davey said: “We are working at a great pace to establish and empower the OGA to be a strong and influential regulator, equipped with the necessary powers to regulate and steward the North Sea basin.
“To ensure the OGA is sufficiently resourced to deliver its remit of maximising economic recovery from the UKCS, and in line with the established precedent for other regulatory bodies, we have determined that the OGA should recover its costs from the companies who benefit from its services.
“We agree with industry that it is important that the levy is simple, transparent and cost-reflective.
“Our consultation sets out details of the allocation methodology and the proposed levy rates. In line with the early focus of the OGA, we have determined that initially we will levy only offshore petroleum licence holders as (in the short term) the OGA will incur costs related to these licence holders.”
The deadline for submissions on the scale of the levy is by 20 April 2015.