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Ofgem To Smooth The Way For Microgeneration

Posted: 10/10/2006

Energy suppliers are being asked by energy regulator Ofgem to resolve several key issues so that more people can easily generate energy for their own homes. There are currently some 80,000 microgeneration units in British homes, including roof-top wind turbines and small solar-powered units.

Microgeneration supplies electricity to the home, and surplus amounts can be fed back into local distribution networks. Examples of microgeneration units include:
• small-scale solar technology
• micro-hydro generation
• small wind generators, and
• domestic scale combined heat and power (DCHP) equipment.

DCHP boilers are powered by a mains gas supply and provide heating and hot water like a normal boiler. However, they also contain a generator producing electricity from the same gas supply to power domestic equipment such as lights, televisions and hi-fis. but that figure is set to grow as DIY stores are starting to sell the units.

Ofgem has asked suppliers to make it easier for people to install the units and sell any surplus electricity they generate back to the electricity networks. Ofgem wants to see the system simplified as the current arrangements are too complex for customers to deal with and some are not being paid for power they supply back to networks.

Ofgem would like to see suppliers acting as a one-stop-shop for information on how to install microgeneration units and other issues such as health and safety regulations and notifying their local electricity network. In addition, they say suppliers should help customers obtain meters which can register exports of surplus electricity they may want to sell.

Ofgem Chief Executive, Alistair Buchanan, said: “Ofgem has been identifying issues that are preventing further growth of microgeneration. Suppliers need to compete against each other to raise their game and address these issues so they can respond to the growing numbers of customers that want to generate their own power. If they are unable to successfully do that, then new legislation could force us to set prices and terms for the sale of surplus electricity back to the networks".

“Ofgem will also play its part by removing any regulatory barriers to microgeneration through our review of gas and electricity supply licences. We are also helping to make it easier for microgenerators to claim Renewables Obligation Certificates and we have established a forum to meet microgeneration companies and further discuss issues.”

Dave Sowden, Chief Executive of the Micropower Council, said: “The micropower industry welcomes Ofgem’s commitment to playing its part in removing regulatory barriers to the uptake of micropower technologies.

Ofgem’s proposals are set to help by encouraging a one stop-shop for customers in their interface with the electricity industry; removing a significant barrier to energy services, helping to ensure customers get paid appropriately for surplus electricity; allowing micropower customers to access the support schemes they are entitled to; and challenging electricity distributors who charge micropower customers extra.

The regulator has a key role to play in the wider government strategy for the micropower industry, and we look forward to continued constructive working with Ofgem as it implements this set of proposals.”

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