E.on slashing export SEG rate from 16.5p to 3p

Norfolk_guy

Just had a shocking email come through from E.on
We have been selling our surplus pv solar electric to them under their SEG tariff. 

As we also buy our electric from them they pay us 16.5p per kWh 
this has now been reduced to 3p !!!!

As both a business customer (190kw system) and a homeowner (18kw system) this will hit both of our accounts really hard and cost us well over £10k/year. 

Apparently all SEG customers who have a system bigger than 15kw will be on this new tariff. 

The bizarre thing with this is that our contract date for SEG renewal was on 1st June, they have only just sent us a email today 28th July asking for the annual reading. 

So they appear to be retrospectively reducing their rate. 

Although as they rely on a photo of our meter as proof of export readings, they can’t pay us less for the last month I guess ?

I was under the impression it was a rolling contract, but basically they are giving us zero notice of slashing what they are paying us. 

I can’t get out of our business E.on bought electric contract for well over another year and most better SEG tariffs are tied to you buying electric too. 

Anyone else in the same boat ?

MWT

Is that based on kWp or KVA export approved by DNO or actual export or something else?

Scot_39

Whether solar exporters like it or not - during most of the day time in summer - unless its particulary still and wind in one of its regular dips - like the recent winter and summer low floors of 5-10% of rated output - the UK now has an excess of generating capacity to meet current demand.

Grid level, local distribution level etc (very few solar farms are true national grid level - at one stage last year iirc just 2 fed in at 275 / 400 kV grid level).

Paying you high SEG rates all day - just encourages you not to use your own or store your own power for later in the day / night - and to export into a saturated marketplace - where renewables wind - and this year NESO announced Feb to Jun - even commercial solar farms now being paid - are now all too regularly being paid constraint payments - not to generate.  

Seagreen - the biggest wind farm in Scotland - online fully from 2024 iirc - already holds the infamous honour of being paid constraint payments 71% of the time, (and getting was it around 40% of the total paid to Scotlands c15GW of farms)  for some or all of its 1.1GW capacity.

Last year those payments reached £1bn for first time ever - nearly 4x 2 years ago - by some estimates - and 4x 3 years ago by others.

(Although some anti wind sites and media have perhaps deliberately used wording as constraint and figures for total balancing costs.)

Balancing including £3bn of grid thermal (old NG ESO) but also load balancing constraint payments + gas etc standby / spin up etc balancing costs - total forecast £8bn - by 2030 (new NESO figures).

Your remedy

As a home user you might be able to move onto a more dynamic TOU export tariff with better certainly peak early evening rates - if have smart meter.

Although earlier this year some of those best rates dropped - and one of the Octupus dropped normal day time but boosted peak 4-7pm demand time iirc.  Cannot remember actual rates though.

Not so sure about the business contract though. Especially if tied in.  But I suspect they will have the right to vary the rates as they see fit within it.

Norfolk_guy

MWT said:

Is that based on kWp or KVA export approved by DNO or actual export or something else?

It’s based on your total installed capacity (TIC) which is what’s declared by your installer

Scot_39

I assumed it was metered if SEG ?

There used to be some nominal % of rated under was it the FIT scheme - or even one proceeding it - as few homes had proper export meters fitted by suppliers ?

From Ofgem site 

https://www.ofgem.gov.uk/environmental-and-social-schemes/smart-export-guarantee-seg

"SEG payments are calculated by using export meter readings"

debitcardmayhem

On their website 

Scot_39

debitcardmayhem said:

On their website 

The OPs business is 190kW rated - well over the 15kW

Actually his home 18kW - so is over it too.

So they are likely applying the lower rates in 3 - and cannot see if that has any limits given the large arrays.

debitcardmayhem

@Scot_39 oops my bad, it’s a big old system.

MWT

Norfolk_guy said:

MWT said:

Is that based on kWp or KVA export approved by DNO or actual export or something else?

It’s based on your total installed capacity (TIC) which is what’s declared by your installer

Interesting, so if it is TIC not approved Export Capacity then you could have over 15kW TIC but have your Export Capacity limited below that and still fall foul of the E.ON tariff change. 

Scot_39

debitcardmayhem said:

@Scot_39 oops my bad, it’s a big old system.

No I had to read the numbers twice - both numbers.

Norfolk_guy

Scot_39 said:

I assumed it was metered if SEG ?

There used to be some nominal % of rated under was it the FIT scheme - or even one proceeding it - as few homes had proper export meters fitted by suppliers ?

From Ofgem site 

"SEG payments are calculated by using export meter readings"

Yes metered on SEG, get paid for surplus electricity not consumed on site. 

FIT finished years ago