Asked by: Jonathan Edwards (Independent - Carmarthen East and Dinefwr)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans he has to review the levels of remuneration received by those producing electricity in their homes and businesses which is then fed into the grid in response to the large increases in electricity prices being charged by suppliers.
Answered by Greg Hands
The Smart Export Guarantee, introduced in 2020, is a cost-reflective and market led mechanism, helping to level the playing field for small-scale low-carbon generation whilst supporting the transition to a smart and flexible energy system. It provides a route to market for any excess energy exported to the grid following closure of the Feed-in Tariffs scheme.
In order to enable the Smart Export Guarantee to be market based and encourage innovation, one of the key features is to allow suppliers to set both the tariff levels and structure. These tariffs are not directly linked to the wholesale price, or the increase in the retail price of electricity. The Department believes the market has responded positively to the Smart Export Guarantee in its first year, but will review again for signs of price competitiveness and innovation following Ofgem’s annual report in the Autumn.