Recent changes to the Bill sees sustainability climb up the hierarchy of Ofgem’s duties, DECC recieve intervention powers on transmission access issues and the feed in tariff threshold move from 3 to 5MW.  

Please note these changes are not yet agreed, but are expected to be passed as they have been put forward by Government.   

Sustainability moves up the hierarchy of Ofgem’s duties

The Lords amendment moves sustainability further up Ofgems hierarchy of duties. This puts it on an equal footing with security of supply and second only to Ofgems primary duty to protect the interests of customers and promote competition.  The role of sustainability in the primary duty is also strengthened by making it clearer that the interests of future customers are to be considered alongside existing consumers.   This change is in addition to the update to Deccs guidance to Ofgem on how Ofgem should interpret its social and environmental duties. This move is extremely welcome by the REA who has been calling for a realignment of the regulators remit.

Giving DECC intervention powers on transmission access issues 

DECC is to have the power to override Ofgem if it is not happy with the outcome of the Transmission Access Review.  The power will allow DECC to amend licences and codes including giving generators firm connection dates.  The powers can only be used in relation to facilitating access to, or the efficient use of the transmission system.  The powers will only exist for two years.

Increasing the upper threshold for the feed-in tariff from 3 to 5MW

The upper threshold for the feed-in tariff will almost certainly be increased from 3MW to 5MW.  The threshold of the feed-in tariff is still to be decided following a consultation on how the feed-in tariff will operate.  The upper threshold exists in the Energy Bill so that industry will know nothing above that threshold will be included.