MCS publishes response on latest SEG Consultation

On the 9th October 2019, Ofgem published its Draft Supplier Guidance on the Smart Export Guarantee (SEG), allowing a 4-week comment period.

Today MCS submitted its response to the guidance which was published in accordance with Article 4 of the Smart Export Guarantee Order 2019 and clarifies how licenced electricity suppliers should administer the SEG obligation as announced by the Department of Business, Energy and Industrial Strategy (BEIS).

The focus of the response from MCS centred around question three and whether the approaches set out were appropriate and if any other approaches should be considered.

MCS raised concerns over the ambiguity and potential compromise presented by unclear language that has been used so far. To support the SEG tariff registration process, MCS or an equivalent scheme that meets ISO 17065 UKAS Standards, will provide a certificate for eligible installations. The underpinning legislation clearly states this requirement.

MCS already acts as an impartial third party, keeping a clear record of installations for government-backed initiatives including FiT and DRHI; and will go on to provide this service for SEG Generators and SEG Licensees.

Ian Rippin, CEO of MCS commented, “Investing in renewable energy is a big step for consumers, MCS as an organisation supporting the sector, sees its role as providing confidence in home-grown energy. To that end we are submitting our written position to Ofgem’s Smart Export Guarantee Guidance Consultation. It follows our previous proactive engagement with officials at BEIS and Ofgem as we strive to ensure clarity around the implementation of SEG so that consumers, nor Standards are compromised.”

The closing date for providing comment is 6th November 2019.

On 10 June 2019 the Department of Business, Energy & Industrial Strategy (BEIS) laid legislation – the Smart Export Guarantee Order 2019 – and amended the electricity supply licence conditions to introduce the Smart Export Guarantee (SEG). This policy comes into force on 1 January 2020 and will ensure that any eligible small-scale low carbon generators will have access to a tariff for their exported electricity.