Ofgem believes suppliers should compete to put in place arrangements to boost the level of installed microgeneration, including making it easier for people to install the units and sell any surplus electricity back to the grid. Suppliers should also help customers obtain smart meters which can register exports of electricity.

However, while the regulator plans to remove any regulatory barriers to microgeneration it also threatens to introduce legislation to force action if foot-dragging by suppliers is suspected.

Ofgem chief executive, Alistair Buchanan, said: “Ofgem has been identifying issues that are preventing further growth of microgeneration. Suppliers need to compete against each other to raise their game and address these issues so they can respond to the growing numbers of customers that want to generate their own power. If they are unable to successfully do that, then new legislation could force us to set prices and terms for the sale of surplus electricity back to the networks.”

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