Do energy companies resent paying the FiT?

Or, to put it another way, is there any incentive to energy companies to be chosen as a FiT supplier?

Do the FiT payments come out of their profits, or do they just claim them back from the government?

Just curious, as if there are no benefits, surely it would be in their commercial interest to delay payments and generally make themselves unattractive to customers looking for someone to choose as their FiT payment provider?

(for anyone confused by this post, FiT stands for Feed in Tariff, and it mainly applies to people who are installing solar panels, which generate FiT payments from companies like Eon, Scottish Power etc)



  • MankysteveMankysteve Forumite
    4.3K Posts
    Part of the Furniture Combo Breaker
    Fits are not government subsided. The costing is shared over all companies so if company A gives out £1000 a year in fits and company B give out £500 then company B has to give company A £250 its a bit more complicated than that.

    So natural I think won't like it.
  • keith_r59keith_r59 Forumite
    255 Posts
    FITS are paid out of the environmental charge component that everyone of us has to pay on our electricity bills so it doesn't affect the suppliers profitability as they claim back the payments form a central fund.

    Here is a breakdown of what components makes up your gas and electricity bills.

    I don't know why some suppliers are better than others when paying out the FITs but as with anything I suggest shopping around until you find the best service. I would recommend e.on.
  • celeritycelerity Forumite
    311 Posts
    That answers my question, thanks to both of you.

  • grahamc2003grahamc2003 Forumite
    1.8K Posts
    The suppliers (or some of them) will have an obligation to administer the fit payments. The other side of the coin is that they'll make a profit on any resources they use to administer the system. So all the systems developments, meter readings, hardware, software and support costs will be reimbursed along with the actual fit payments made, with a profit on everything bookable to the fit system. The method of reimbusement will be via price hikes in customer bills (i.e. if a supplier puts up rates by 2p/kwh, and 1.5p/kwh is the allowable cost (including the profit element) of the fit system, then the regulator would only be interested in the other 0.5p of the price rise).
  • stoozeystoozey Forumite
    97 Posts
    DO you think the energy companies provide FIT for free ?

    They out on 25% admin charge (at least) on top of every fit payment and pass the whole cost on the you the consumer.

    Wake up and smell the coffee already.
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