MOPs, Triads, LEC’s, REGOs and other such weird terms. Selling your generated energy… simple. Hah!

syzygy_energyimportexport_artworkThe following is what I understand of the energy market by dabbling at the periphery. Now that you’re making electricity you decide to move out of the guaranteed minimum value, set by the government for all generators under the Feed in Tariff scheme. This is currently 4.92p per kwh and is actually not too bad based on the quite low whole cost in the market for the last 5 or so months. The price is currently mildly skyrocketing. But if you have a larger than 30kw system and have such a thing as an export meter or have gone the whole hog and probably around £500 per annum in charges for managing your data, you have half hour meter. (which provides the lingua franca for energy data in the UK) Energy is split in 48 units each of half hour and each one has a slightly different value. (the energy before and after Coronation Street is worth so much more than at three a.m. energy) but you want to sell of your energy! You ask for a quote from various companies. The first thing which strikes you is that they all quote slightly differently for example one companies peak price (the Coronation Street energy) stops by 8pm and another one goes on to 12:00 am. Some do five-day Corrie’ price whereas others do seven days. You will have 12 months of your production data and so can see when and how much (you might have peak and off-peak, winter and summer, weekend and weekday prices to compare and all of the combinations of these variables) lots of data crunching to get a wholesale price. Some suppliers build in the embedded benefits into the wholesale. Woooaah… what are embedded I hear you say? These are payments distribution-connected generators can earn from reducing network usage I took the following from the Elexon website of how the charging system works for these benefits

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I’m glad that’s nice and clear now! Another Hah! There are also ‘use of systems charges’. You get paid or you get invoiced (depends where you are in the system and when you connected in terms of grid reinforcement or upgrading) Triad payments for generating for a specific time when the grid is stressed and also climate change payments under the Levy exemption certificate and then REGO’s. I’m not going to teach how the electricity charging market works (not sure I fully understand it myself) the main focus is how do you get the best price and how you compare like with like especially when there is no consistency in quoting, management fees (watch out for this one), pass through percentages for benefits (what % of the embedded is passed on to you and what the supplier keeps as commission) and the list goes on. Do you use a broker to take care of it (not a good financial experience to date on this as we seem to be getting better prices if we ‘nose to grindstone’ ourselves or you have the time. The answer? Not sure. Currently working with a few people  to see if we can do some form of comparison tool. the problem is that some quotes only last for a few hours as it’s such a dynamic place out there in planet energy market at the moment. we have just received a peak price in excess of 9 pence per kwh from one supplier who is probably nervous of having to pick up hefty imbalance charges this winter as there is a some doubt on the amount of electricity available and all it takes is one of the big embedded generators to go off for an hour or so in Dec to Feb and a lot of money changes hands very quickly. Work in progress!

ps MOP’s as well as cleaning the floor are Meter Opperators

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