The Energy Systems Catapult and Oxford University have this week published a new study suggesting a quirk of the UK’s energy tariff pricing regime is hampering the shift to lower carbon heating systems, at the same time as favouring decentralised generation technologies such as solar panels and off-grid diesel generators. The study explores so-called Cost Reflective Pricing and asks if the split between variable and fixed charges in energy bills – that is the unit price of power and gas and the standing grid and environmental charges – are efficiently distributed. It argues the current approach “may inadvertently distort market behaviour towards favouring investment in decentralised generation technologies, like solar PV and diesel, over demand technologies like heat pumps”.
Business Green 19th Sept 2018 read more »