The future for small-scale low-carbon generation: part A

This consultation considers future arrangements that would facilitate:

• a route to market which supports small-scale low carbon generation of electricity
• market innovation
• lowering of costs for consumers
• the promotion of the efficient use of electricity through price signals, for instance promoting export when the grid is experiencing high demand

Under the Smart Export Guarantee (SEG), government would legislate for suppliers to remunerate small-scale low-carbon generators for the electricity they export to the grid. The evidence gathered from this consultation will allow government to decide on whether, and how, to proceed with the SEG. This consultation is a result of a call for evidence.

An impact assessment is included as part of the consultation. The expected impacts are presented as a range to reflect the fact there is no central forecast.

29 April 2019 - part B of consultation

Part B of this consultation on modifications to the electricity supply licence conditions was launched on 29 April 2019.

Who should respond

We are seeking responses from:

• consumers
• trade associations
• small-scale low-carbon electric generators
• suppliers
• aggregators
• other interested parties

Minimum supplier size threshold: update 11 February 2019

The consultation proposes that larger electricity suppliers (those with greater than 250,000 domestic electricity supply customers) must offer small-scale generators a price per kWh for the electricity they export to the grid. It suggests that smaller suppliers may opt to voluntarily provide a SEG tariff but must adhere to the rules and guidance associated with the SEG.

Much of the feedback we have received from suppliers, generators and trade associations has suggested that the SEG obligation could usefully be extended to include a larger range of suppliers, for example by:

• adopting a lower threshold of 150,000 domestic customers (in line with the obligations placed on suppliers in respect of other BEIS schemes such as the Energy Company Obligation scheme), or
• not applying any minimum size threshold (so that all suppliers are included)

We welcome views from suppliers in those brackets:

• respond to the consultation here
• contact the SEG team by email futureofsmallscalesupport@beis.gov.uk
• join our workshop exploring the issues in the consultation, London, 15 February 2019 - contact futureofsmallscalesupport@beis.gov.uk for further details.