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Ofgem publishes Smart Export Guarantee guidance

Posted: 17 December, 2019. Written by Virginia Graham

On 12 December Ofgem published the final version of its guidance on the Smart Export Guarantee (SEG). Due to come into force on 1 January 2020, the SEG Order and associated Licence Conditions require electricity suppliers to offer new generators payment for electricity exported onto the grid.

The Regulations extend to generators of anaerobic digestion (AD), hyrdro, onshore wind and solar PV systems with a capacity up to 5 MW, and to generators of micro-CHP with an electrical capacity up to 50 kW. To benefit from the SEG generators will be required to have a smart meter capable of measuring exports. Elecricity suppliers will be free to design their own SEG, and generators will be free to choose the one they like best. There is no fixed or minimum tariff, but it must be greater than 0 p/kWh exported at all times.

Electricity suppliers will be responsible for running the SEG. However, Ofgem will monitor the scheme and issue an annual report. Electricity suppliers will also be responsible for dealing with complaints from generators with the Energy Ombudsman providing the final point of escalation.

Smaller electricity suppliers will not be obliged to offer a SEG, although they may choose to do so. Generators who are registered with the Feed-In Tariff will not be eligible. See below for more information.

Further Information: