Ofgem has pruned the subsidies available for small-scale electricity generators that provide back-up power for peak winter demand in a move that the watchdog claims will save Britons nearly £400 million a year. The cuts in “embedded benefits”, or subsidies paid to operators of diesel, biomass and wind generators of under 100 megawatts, come after complaints from large producers that they were too generous and distorting the market. The amount paid for electricity in periods of peak demand will fall from £47 per kilowatt to between £3 and £7 per kilowatt. The changes will be introduced over three years from 2018. The payments had been due to rise over the next four years to £70 per kilowatt. Jonathan Marshall, of the Energy and Climate Intelligence Unit, said: “This backwards step will hit small and flexible power stations, exactly the sort needed to keep the grid balanced.”
Times 21st June 2017 read more »
Telegraph 20th June 2017 read more »
CHP and biomass electricity generators set to lose £370m in latest OFGEM cuts.
Scottish Energy News 20th June 2017 read more »