UK Energy Regulator Plans to Cut Payments to Embedded Generators
June 20 2017 - 4:20AM
Dow Jones News
By Ian Walker
LONDON--U.K. energy regulator Ofgem announced plans Tuesday to
lower the payment that some small electricity generators receive
for producing electricity at peak times by between 3 pounds ($3.80)
and GBP7 a kilowatt over the next three years, as it believes the
payment distorts wholesale and capacity markets.
Currently, small energy generators with less than 100 megawatt
capacity, get GBP47 a kilowatt from suppliers for helping them
reduce charges to use the transmission network. This is in addition
to the price these generators get for selling their electricity,
Ofgem said, adding that the payment cost customers around GBP370
million last year.
Ofgem Chief Executive Dermot Nolan said: "We are concerned that
the current level of the payment is distorting the market and is
set to increase further."
"Our role is to protect customers and make sure costs are kept
as low as possible. That is why we are taking action by reducing
this payment."
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
June 20, 2017 04:05 ET (08:05 GMT)
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