By Marianne Anton

The ghost of tariffs past

Following its announcement in December 2018 of the closure of the Feed-in Tariff scheme (FIT) to new applications after 31 March 2019, the Department of Business, Energy and Industrial Strategy (BEIS) launched a consultation on 8 January 2019 on the introduction of a mandatory supplier-led route to market for small-scale low-carbon generation, the so-called “Smart Export Guarantee” (SEG). The proposed SEG would replace the existing FIT scheme, with electricity suppliers paying new small-scale energy producers for electricity exported onto the grid from homes and businesses.

The ghost of tariffs present

The introduction of the new scheme sits in the wider context of an energy system in transition – one that is becoming smarter and cleaner, with new tools introduced at a rapid pace to facilitate greater control by customers of their energy usage.

BEIS envisages that the new scheme could create a whole new market, encouraging suppliers to competitively bid for electricity, giving exporters the best market price while providing the local grid with more clean, green energy.  The aim is to unlock greater choice and control for household producers over how they buy and sell their electricity.