Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reason the unit cost paid per KWH under the Smart Export Guarantee is lower than the current price of electricity.

The Smart Export Guarantee (SEG) is a cost-reflective and market led mechanism and it is for suppliers to determine the value of the exported electricity and to take account of the administrative costs associated when setting their tariffs. The SEG contract that a supplier has with a householder is at a set price which is not directly linked to the wholesale market. We are currently reviewing Ofgem’s recently published annual SEG report to ensure that small-scale generators continue to have an effective route to market.