Purchasing, Distribution and Administration of Solid Fuel Benefits

Following the privatisation of British Coal Corporation (BCC) in 1994, the Government assumed the liability for the provision of the concessionary fuel entitlements to former employees of BCC and their adult dependents. These former employees of BCC were those already retired or made redundant at the point of privatisation. Concessionary fuel entitlements began in the 1980s and are governed by the National Concessionary Fuel Agreements (NCFA). These take the form of collective agreements and were put in place between the BCC and the mining unions. These agreements were amended from time to time until the industry privatised; and the obligation was transferred to HMG. This was achieved by means of a Restructuring Scheme made on 27th March 1995, made under sections 12 and 19 of the Coal Industry Act 1994.

On this basis, the Secretary of State has a legally binding obligation to provide solid fuel or cash in lieu to former BCC employees as the collective agreements specify. This cohort is managed by DESNZ through a scheme known as the National Concessionary Fuel Scheme (NCFS). There are two NCFS Agreements for different employment groups:

• the National Concessionary Fuel Agreement (NCFA) for Mineworkers, Officials and Clerical Staff and;
• the British Association of Colliery Management (BACM) for management staff.

This contract is for the for the provision of solid fuel services.