Ofgem has recently published its decision document setting out the steps it intends to take to facilitate the development of microgeneration and ensure that regulatory measures promoting microgeneration are well designed. The document is largely a statement of commitment - in this case, Ofgem’s commitment to continue to work to review (and remove) regulatory barriers to microgeneration and participate in current initiatives to further this objective.

Ofgem favours direct industry participation to resolve many of the barriers to microgeneration on a commercial basis. In particular, the arrangements for sale of surplus electricity produced by microgeneration remain a barrier to greater market penetration of microgeneration. Ofgem considers that this should be resolved on a commercial basis between market participants and challenges industry to take the necessary steps.

Ofgem itself will:

  • ensure that unnecessary licence requirements that potentially hold back microgeneration are removed

  • reduce barriers to the connection and use of the distribution network by microgenerators, for example, by working with distribution companies to ensure that network charges take account of the benefits of widespread microgeneration

  • remove barriers to smart metering by working on the interoperability of smart meters

  • work with Defra and the DTI to implement changes brought in government legislation and environmental programmes, to facilitate the access of microgeneration projects to the Renewables Obligation and the Energy Efficiency Commitment.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

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The original publication date for this article was 16/10/2006.