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Gov wants to alter our FIT contracts from rpi to cpi

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(@adamk)
Honorable Member Member
Joined: 10 months ago
Posts: 192
Topic starter  

watched this today. like he says email them to say you want what you signed a contract for. dont select an option.



   
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(@adamk)
Honorable Member Member
Joined: 10 months ago
Posts: 192

   
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(@jamespa)
Illustrious Member Moderator
Joined: 3 years ago
Posts: 3659
 

I don't read speculation on Facebook, but contracts with Government are contracts just like any other, enforceable through the courts.  The only way this can change is if Government legislates specifically to override them - which it generally doesn't because undermining the credibility of Government contracts crashes the economy, or if you agree to the change.

So if you signed up to RPI it will almost certainly remain RPI.  If the contract you signed gives flexibility, then Government can use the flexibility you signed up for.  If what you signed up to says something like 'regulations from time to time approved by the Secretary of State', then you signed up to that flexibility.

Personally Im not going to worry, even though I got nothing like the top rate FIT for my panels, they have easily paid for themselves and if the Government chooses to use whatever flexibility there may be in the contract then so be it.


This post was modified 3 weeks ago by JamesPa

4kW peak of solar PV since 2011; EV and a 1930s house which has been partially renovated to improve its efficiency. 7kW Vaillant heat pump.


   
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(@judith)
Noble Member Member
Joined: 2 years ago
Posts: 444
 

We have the original FIT tariff (very nice indeed thanks) and it’s long since paid for. Without finding the paperwork it was ‘inflation linked’.

So we’ve no beef either way.

The bigger items for all our bills are the other parts of the Renewables Obligation method of subsidies to kick start the wind and home/business solar.

 


2kW + Growatt & 4kW +Sunnyboy PV on south-facing roof Solar thermal. 9.5kWh Givenergy battery with AC3. MVHR. Vaillant 7kW ASHP (very pleased with it) open system operating on WC


   
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Jeff
 Jeff
(@jeff)
Noble Member Member
Joined: 5 years ago
Posts: 558
 

It is part of a wider change to remove RPI from numerous places that has been going on for years. RPI has been discredited as measure. 

There is already a government consultation live to change the link from RPI to CPI for FIT.

https://www.gov.uk/government/consultations/feed-in-tariffs-fit-scheme-indexation-changes

It includes passing legislation and the changes coming into effect in April 2026. 

Other examples include a change to ROC Renewable Obligation Certificates from RPI to CPI. There is also a government consultation on this. 

I personally suspect the FIT change is a done deal when reading the consultation. 

Without these FIT changes the policy costs on our bills will continue to rise for no benefit to the wider population. Some FIT customers won't be happy but the wider population will be better off.

The ROC costs are also included in the policy costs on our bills. This is the pre cursor to the CfD scheme.

All the built in escalation in our bills FIT, ROC, CfD, transmission investment etc. unfortunately continues to guarantee a proportion of our bills will continue to increase whatever the government do. 


This post was modified 3 weeks ago 2 times by Jeff

   
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(@agentgeorge)
Estimable Member Member
Joined: 10 months ago
Posts: 100
 

With every change there will be winners and losers, think of all the pensioners who are paying the subsidy on there electric bill to pay for those who get free energy from their PV.

I know people who turn an electric fire on rather than export any spare power to grid



   
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(@jamespa)
Illustrious Member Moderator
Joined: 3 years ago
Posts: 3659
 

Posted by: @agentgeorge

I know people who turn an electric fire on rather than export any spare power to grid

Thats just mad, you can get 16.5 pence per kWh for export.


4kW peak of solar PV since 2011; EV and a 1930s house which has been partially renovated to improve its efficiency. 7kW Vaillant heat pump.


   
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(@colinc)
Eminent Member Member
Joined: 2 months ago
Posts: 18
 

I watched the video cited above and was left with the thought it was perhaps more of a bleat than a constructive argument. If FIT contracts were robust, ie. "bullet proof", this consultation would likely not be taking place. Granted, any changes will need some form of legislaton.

This particular consultation is not really the start of something. HMG have been making changes, wrt to RPI and CPI indexing for years; even changing how they are both calculated as well as their constituent component parts.

The DWP is likely the largest distributor of HMG's income, viz from Taxes, in terms of individual distributions. People in receipt of benefits, pay & pensions across government departments, (ie. health, civil [various], defence), have also been affected to varying degrees since the 1970s.

By all meams lobby and petition; and if the numbers are there, even pursue a "class action" through the courts. Whatever the outcome, we will all foot the bill to varying degrees.


This post was modified 3 weeks ago by colinc

   
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Jeff
 Jeff
(@jeff)
Noble Member Member
Joined: 5 years ago
Posts: 558
 

Posted by: @colinc

I watched the video cited above and was left with the thought it was perhaps more of a bleat than a constructive argument. If FIT contracts were robust, ie. "bullet proof", this consultation would likely not be taking place. Granted, any changes will need some form of legislaton.

This particular consultation is not really the start of something. HMG have been making changes, wrt to RPI and CPI indexing for years; even changing how they are both calculated as well as their constituent component parts.

The DWP is likely the largest distributor of HMG's income, viz from Taxes, in terms of individual distributions. People in receipt of benefits, pay & pensions across government departments, (ie. health, civil [various], defence), have also been affected to varying degrees since the 1970s.

By all meams lobby and petition; and if the numbers are there, even pursue a "class action" through the courts. Whatever the outcome, we will all foot the bill to varying degrees.

The consultation is just part of the normal process for changing license conditions. They happen regularly, even for relatively uncontroversial changes. It is the standard way the government work. They always do a consultation with license changes. This is where the FIT changes are published, there are similar pages for other licenses. 

https://www.ofgem.gov.uk/guidance/fit-amendment-orders-and-amended-licence-conditions

 

 


This post was modified 3 weeks ago by Jeff

   
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