Ofgem publishes plans for smaller UK generators

7 Feb 2002 – A report setting out ways to enable smaller generators to sell the electricity they produce with greater flexibility and more competitively under the New Electricity Trading Arrangements (NETA) was published today by energy regulator Ofgem.

This is the final report of the Consolidation Working Group (CWG) set up last year to tackle obstacles to the development of consolidation services which allow smaller generators to participate fully in NETA.

Before NETA was introduced, it was accepted that smaller generators should be allowed to sell their fixed and unpredictable output separately. This would give them more flexibility to compete for better prices.

For example, they can contract to sell fixed volumes of electricity to one supplier while managing less predictable output more effectively by selling it through companies providing consolidation services. The CWG has now addressed the mainly technical barriers that prevented this option being available from when NETA went live.

Ofgem’s Managing Director, Competition and Trading Arrangements, Eileen Marshall said: “We strongly support the need for smaller generators to have greater flexibility under NETA by being able to sell fixed amounts of electricity and unpredictable output separately. Subject to necessary rule changes, these measures will help smaller generators and encourage further development of consolidation services.”

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