FIT Payment Delays

[jason121]

Submitted mine two weeks ago got paid this week by EON

 

[TedM]

From a cash-flow point of view the FiT payments do come from the suppliers own cash. There is a quarterly process (called levelisation) that settles intra-supplier FiT payments, across all suppliers, where payments are made or received based on the market share of each supplier vs their FiT bills. It takes about 6 weeks after the end of a quarter to settle this.

It's obviously in the suppliers' interests to delay FiT payments to customers for as long as possible to maximise their cash-flow position.

 

[Worcester]

Thanks TedM, companies like Good Energy - which are very high purchasers of renewable energy, and have lots of FiT only customers, would probably be in a negative cash flow situation because of that - I would strongly suspect that they will be one of the companies receiving cash from the big six, and so be a net beneficiary of the levelisation process, so it is definitely in their interests to pay after that date.
The big six? they just sit on the cash and lend it on the overnight market ... (cynic in me :crazy

 

[TedM]

Good Energy have about 10% of FiT contracts so have to find £70 million or so a year. As they have such a tiny market share of supply almost all of that has to come from the levelisation process administered by OFGEM.

 

[SRE]

We have 3 systems with 3 utilities. EDF & EON pay within days of submission, Good Energy 8 weeks every time most likely because of the levelisation process. Although Good Energy are always pleasant on the phone every customer we've sent to them has had horrendous problems, compared to other utilities who have put the submissions through without any issues. I love the GE ethos but they're not easy to deal with.