Smart Export Guarantee Scheme – Live 1/1/2020

01/01/2020

What is the Smart Export Guarantee?

The Smart Export Guarantee, (SEG), is designed to measure the amount of energy being exported by (residential) customers. DCC functionality allows this for existing “feed in tariff” customers, (being phased out), as well for those who take up new export tariffs under the SEG.

Under the terms detailed by Ofgem*, “the Smart Export Guarantee (SEG) is an obligation set by the government for licensed electricity suppliers to offer a tariff and make payment to small-scale low-carbon generators for electricity exported to the National Grid, providing certain criteria are met.”

The Smart Export Guarantee Scheme becomes live on 1st January 2020.

What specific requirements do Licensed Electricity Suppliers have under the SEG?

According to Ofgem*: “Licensed electricity suppliers are only obligated to provide SEG payments to generators if they are confirmed to be an SEG licensee.

By 14 February of each SEG year all licensed electricity suppliers must notify Ofgem whether in the next SEG Year they will be a:

  • Mandatory SEG licensee, if they have at least 150,000 domestic electricity customers as at 31 December of the immediately preceding year. These licensees are obligated to offer payment to certain eligible generators.
  • Voluntary FIT licensee, if they have fewer than 150,000 domestic electricity customers and elect to participate in the SEG arrangements.
  • Non-SEG licensee, if neither of the above apply. Non-SEG licensees can still make export payments to generators but will not be bound by the SEG arrangements.”

How can Smart DCC help?

Whilst Smart DCC is not obligated by the SEG, we offer existing functionality to be able to help our customers in ensuring they have relevant and accurate export data from individual meters if required. Whilst Electricity Suppliers are also not obligated to use Smart DCC for this information, there are advantages to doing so. These include DCC offering a highly secure environment, offering access to all smart meters. DCC’s solution is future proofed allowing customers a safe solution that will evolve as the industry evolves.

What happens next?

Any Licensed Electricity supplier who is already a fully-onboarded DCC customer, may use the relevant Export messages, (DCC has Service Request Variants (SRVs) numbered: 4.12, 4.2, 4.6.2, 4.8.3 & 6.20.2 for Export). These allow customers to obtain the necessary data they need to use DCC for this purpose.

DCC will support all suppliers to use the export metering capability. For those not onboarded, DCC will support them to expedite onboarding and allow them to get all the benefits from a centralised, future proof and highly secure solution .

Where can I find out more information about the SEG?

Please use this link for further information: https://www.ofgem.gov.uk/environmental-programmes/smart-export-guarantee-seg/generators

*https://www.ofgem.gov.uk/environmental-programmes/smart-export-guarantee-seg/electricity-suppliers