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18th Jan 2021 Login  
Feedin tariffs
by Peter at 2008-02-24 21:01:40 (Blog::Peter)
Last month (Jan 08) Friends of the Earth called on the UK Government to institute a major boost in UK renewables to meet EU targets. The press release can be found at http://www.foe.co.uk/resource/press_releases/major_boost_in_uk_renewabl_23012008.html#PDF


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Feedin tariffs Peter - 2008-02-24 21:01:40
Re: Feedin tariffs - eDF Peter - 2008-08-08 09:08:54
I received formal notification from eDF last week that the price they will charge me for electricity are increased from 25 July 2008. From the old price (which was similar to my feedin tariff), the price is now increased to 19.86p for the first 225kWh used each quarter, with subsequent units charged at 12.11p (both prices inclusive of VAT).

I therfore asked eDF if they will be increasing their 'Feedin tariff'. Their response received this morning reads:

"Dear Sir,

Unfortunately the price paid for exported electricity will not be rising at present. One of the reasons is that imported electricity prices are linked to gas prices which are linked to oil prices, whereas renewable installations have already been bought and are not affected by the vagaries of the oil industry.

Kind Regards
Green Energy Team
EDF Energy"


Re: Feedin tariffs - eDF Simon - 2008-08-08 09:41:04
That's daft, but it reflects the problem that exported electricity doesn't have a "worth" per KWh, it only has a price, and that price is set by an industry in the business of recouping investment in fossil fuel-based generation systems.
Re: Feedin tariffs - eDF Simon - 2008-08-08 10:10:44
... sorry to comment to my own comment, but it got me thinking.

If the power companies have seen the writing on the wall and expect a growth in microgeneration, perhaps to the point where it's the exception NOT to be microgenerating rather than the rule, then they could be attempting to build a long-term price differential between imported and exported power.

To sustain their revenues over time at levels like today, that price differential has to be around the size of the cost of imported KWh for a typical consumer (rather than microgenerator) today - and before the most recent round of 35% price rises - ie around 12p-15p/unit.

By their own argument (and allowing for investment payback time), imported electricity would eventually become - essentially - "free" aside from distribution and maintenence costs as generation companies reduce dependence on fossil fuels over time and shift to a larger use of renewables.

The rising price of oil/gas in the meantime will be used to justify more imported electricity price increases to a level high enough to comfortably provide that differential.

And then they can use the rising price of nuclear fuel rods... and so on and so on.

It'd be preferable, I think, for that differential to be set explicitly at a percentage and reviewed over time by a regulator. If imported power costs 20p/KWh, then exported should be bought for... well, any suggestions? 80% of 20p? 90%?

Re: Feedin tariffs - eDF Peter - 2008-08-08 10:59:33
Hi Simon,

Yes, I think you have a point. In any event, the issue of the DNOs (seeking to) establish a differential may be worth airing more widely at a political level. This may 'help' Ofgem to at least think about it. I'll see what I can do.

If you have any further thoughts, do let me know and I will incorporate them too as appropriate.




Re: Feedin tariffs - eDF Ted Marynicz - 2008-08-09 12:19:52
Don't forget that there is the Renewable Energy Strategy Consultation running at present which has a Feed-in Tariff dimension to it at Annex 2.



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