What Role Does Ofgem Play in the Feed in Tariff Scheme?
One of the main purposes of government should always be to protect the interest of its citizens. To this purpose, the Office of the Gas and Electricity Markets, Ofgem, has been set up to regulate gas and electric monopolies by encouraging competition and to provide the interests of consumers which includes a focus on reducing greenhouse gases whilst securing an ongoing source of gas and electricity. This is of course a huge endeavour in and of itself but from those responsibilities the Feed in Tariff (FIT) scheme was born. Ofgem has been given the administration of the feed tariff.
The Purpose of Ofgem Feed in Tariffs
There is actually a twofold purpose in the Ofgem Feed in Tariffs. On the one hand it is their duty to promote the generation of low carbon emission electricity for small scale generators (i.e. households) whilst on the other hand they are looking to make this technology affordable to the average household through tariffs. There is a real need for renewable energy not only to reduce carbon emissions but to also reduce our dependence on foreign oil that is used in the traditional generation of electricity. Until the institution of the Ofgem Feed in Tariff scheme, the generation of renewable energy such as solar power was cost prohibitive and it is the hope of Ofgem that UK citizens will avail themselves of this amazingly generous government grant.
Cause for Concern in the Feed in Tariff News
In the beginning the Ofgem Feed in Tariff was offered to small as well as large entities that were willing to generate low carbon emission electricity. However, it soon became evident that certain large scale solar power schemes were said to be preparing to ‘hijack’ the Feed in Tariff. Since the scheme was originally set up for any entity generating under 5 megawatts, large companies began banding together with schemes of their own that could literally devastate the Feed in Tariff scheme. As a result Feed in Tariff rates for larger systems such as the 5 megawatt systems are set to have their rates cut. This has caused a great deal of worry for homeowners and those only running small < 4kW systems. There is no need to worry as the programme will still offer the same Feed Tariff rates as proposed.
Whilst Ofgem administers the Feed in Tariff in the background as local suppliers are mandated to provide the tariffs, many consumers are still confused about how the Ofgem Feed in Tariff scheme works. Whilst it is possible to get information either from Ofgem or Energy Saving Trust (EST) who is the go-to for information on the frontlines, it is also possible to contact Microgeneration Certification Scheme (MCS) certified solar installers for the most up-to-date information on Ofgem Feed in Tariffs and which systems meet the FIT requirements. New Energy Futures is registered with MCS and well qualified to provide the information you require. Simply call 0844 774 1407 to speak with a representative and to schedule a no obligation visit at your home if you are looking for a solar installation that meets your needs.
