Ofgem Issues Its Decision Document On Microgeneration

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.