UK energy regulator Ofgem has announced that energy suppliers need to raise their game on microgeneration and called for simplified arrangements for consumers to sell surplus electricity generated by microgeneration units.
The watchdog said that energy suppliers need to act as a one-stop-shop for information to help customers wanting to install microgeneration units and has urged suppliers to resolve several key issues so that more consumers can easily generate energy for their own homes.
There are currently some 80,000 microgeneration units in British homes, including roof-top wind turbines and small solar-powered units, but that figure is set to grow as DIY stores are starting to sell the units. Ofgem has asked suppliers to make it easier for people to install the units and sell any surplus electricity they generate back to the electricity networks.
The regulator wants simplified arrangements to be introduced for consumers to sell surplus electricity as it believes the current arrangements are too complex for consumers to deal with, while some consumers are not being paid for power they supply back to networks.
Ofgem also said that it will remove any regulatory barriers to microgeneration and has established a forum to meet microgenerators and further discuss issues
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, commented Ofgem chief executive Alistair Buchanan.
Ofgem will also play its part by removing any regulatory barriers to microgeneration through our review of gas and electricity supply licenses. We are also helping to make it easier for microgenerators to claim Renewables Obligation Certificates and we have established a forum to meet microgeneration companies and further discuss issues.