Latest from DECC 19/10/2012

[Worcester]

Did anyone else see this:

"Draft modifications to the FITs Standard Licence Conditions implementing changes as a result of targetted consultation with electricity suppliers following on from the FITs Phase 2B review for non-PV technologies. ..."
: Department of Energy and Climate Change
http://www.decc.gov.uk/assets/decc/...ble-energy/6778-fits-modifications-4-2012.pdf

Haven't had a chance to read it yet - I was searching for the Feb 2013 tariffs and came across it...

I'm guessing it doesn't impact PV

 

[TedM]

Seen but not read yet.

 

[TedM]

Right, so DECC have completely re-written the Standard Conditions.

AFAICS the main changes are:

- the publishing of new tariffs will change so that DECC will no longer have to update the Standard Conditions each time (with the 40 days for parliamentary approval that goes with that) but leaving it to OFGEM to publish the new rates
- removal of first year RPI index linking for all PV installs in January to March of each year but with the RPI increase kicking in a year later
- variable degression of tariffs expanded to cover all non-PV technologies based on installed capacity

I may be losing my memory but I can't recollect either of those first 2 being covered by any consultation.

 

[Worcester]

@TedM thanks for that.

I don't recall either of those being consulted on either. This puts the PV sector in a quandry though...

If what it is doing is simply enforcing the degression rate and then making the ofgme announcements based on that, no problems, and makes sense. If it allows them to change it however they like then that would be an issue.
The second is probably not a big issue.

HOWEVER, and here is the quandry, if they go unchallenged because everyone sees they are not big issues, it undermines the principles of consultation, and potentially authorises other bigger changes to go thorugh in a similar manner.

 

[Gavin A]

Right, so DECC have completely re-written the Standard Conditions.

AFAICS the main changes are:

- the publishing of new tariffs will change so that DECC will no longer have to update the Standard Conditions each time (with the 40 days for parliamentary approval that goes with that) but leaving it to OFGEM to publish the new rates
- removal of first year RPI index linking for all PV installs in January to March of each year but with the RPI increase kicking in a year later
- variable degression of tariffs expanded to cover all non-PV technologies based on installed capacity

I may be losing my memory but I can't recollect either of those first 2 being covered by any consultation.

they really are trying to make this scheme as fiendishly complex to administer and explain to the public as possible aren't they?

this has at a stroke doubled the number of different tariff rates that will have to be applied throughout the lifetime of the FIT

I can't even begin to attempt to try to work out how we could factor this into our 20 year payback spreadsheets.

I think the first point is fair enough as it's a purely administrative function now that the overall principle has been agreed, the second should really have been consulted upon IMO.

 

[Worcester]

Especially as seeing that January - March spans 2 fit tariffs !

 

[Gavin A]

could someone please donate DECC a braincell to share between them?

 

[JulianC]

A prime example of what happens when clueless, underemployed f**kwits are given a nice, straighforward scheme to administer. I used to enjoy messing about in Excel but am struggling to get the following equation to work: =IF(FITnow>FITin5minutes, KILL Greg Barker, KILL Greg Barker)

 

[BruceB]

careful, that will trigger a flag in a doughnut near Worcester!

 

[TedM]

I remember now that I was going to look out for the section that covered the part where Gavin had to remind me (a few months back now) of the rule that prevents the auto-degression mechanism from setting a tariff for larger systems that is higher than for smaller systems. Here it is - I was expecting it to be poorly worded but I think I will have to print it out and frame it:

Adjustments to tariffs
20. The higher rate or standard rate for the Generation Tariff for a description of Eligible Installation with a Tariff Date in the Solar Tariff Period from 1 May to 30 June 2013 or any subsequent Solar Tariff Period shall not exceed a rate 3.5% less than the higher rate or standard rate which applied to installations of that description (or the most nearly corresponding description in Table 1 in Annex 2) with a Tariff Date three Solar Tariff Periods previously.

21. Paragraph 22 applies if, upon applying paragraphs 9 to 20—
(a) the higher rate for installations (other than stand-alone) with Total Installed Capacity greater than 10kW but not exceeding 50kW would be more than the higher rate for installations (other than stand-alone) with Total Installed Capacity greater than 4kW but not exceeding 10kW; or
(b) the higher rate for installations (other than stand-alone) with Total Installed Capacity—
(i) greater than 50kW but not exceeding 100kW;
(ii) greater than 100kW but not exceeding 150kW; or
(iii) greater than 150kW but not exceeding 250kW,
would be more than the higher rate (after any adjustment under paragraph 20) for installations (other than stand-alone) with total installed capacity greater than 10kW but not exceeding 50kW; or
(c) the rate for—
(i) installations (other than stand-alone) with Total Installed Capacity greater than 250kW, or
(ii) stand-alone installations,
would be more than the higher rate (after any adjustment under paragraph 20) for installations (other than stand-alone) with Total Installed Capacity greater than 150kW but not exceeding 250kW.

22. Where this paragraph applies, the higher rate or standard rate for installations of the first-mentioned descriptions in sub-paragraph (a), (b) or (c) of paragraph 21 shall be reduced so that it is equal to the higher rate for installations of the second-mentioned description in that sub-paragraph.

 

[finchy]

Just great more under hand changes.

 

[SRE]

I remember now that I was going to look out for the section that covered the part where Gavin had to remind me (a few months back now) of the rule that prevents the auto-degression mechanism from setting a tariff for larger systems that is higher than for smaller systems. Here it is - I was expecting it to be poorly worded but I think I will have to print it out and frame it:

Should be on Apollo live on Saturday night!