BEAMA response to Smart Export Guarantee consultation

05 March 2019

BEAMA and its membership support measures to make the UK energy system more robust and sustainable and to incentivise consumers to provide renewable energy and flexibility to the grid. We welcome the Government’s decision to end the uncertainty created by its announcement in December 2018 to cancel Feed-in Tariff arrangements for new customers, and we hope that this new policy, the Smart Export Guarantee, will restore some policy consistency and market confidence for microgenerators.

We view the SEG as a vital and welcome step in the transition for renewable microgeneration from a subsidy to a market. For this to be a success, this market will need to function as freely as possible: without undue distortions that will make the market less efficient and in a way that allows for market players to innovate. Smart Export Guarantee prices should be as reflective as possible of the real market values of the energy and flexibility that microgeneration provides to the grid. The SEG should also not impose policy restrictions on the types of tariffs offered to consumers; energy retailers should be free to adopt innovative tariff structures and consumer relationships.

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