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Author Topic: metered heat vs EPC estimate, based on quarterly or annual figures?  (Read 3086 times)
GavinA
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« on: December 19, 2014, 12:26:04 AM »

If an eligible new build / self build house has to have a meter fitted due to the daft <183 day occupation since completion rules..... the RHI payment is based on the lower of the meter reading or the EPC predictions.

But how is that calculated, is it calculated each quarter, so if the meter reading for that quarter is over the EPC prediction then it would be based on the EPC, but next quarter if it's lower then it would be based on the lower meter reading, or is it just adjusted annually?

Query from our one and only biomass customer (deciding to stick with PV as we're very busy with that), and it's got me a bit stumped.

If anyone who's in this situation could help me out with how it's working for them I'd much appreciate it. Thanks
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BruceB
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« Reply #1 on: December 19, 2014, 06:47:21 AM »

I do not know the answer to your precise question, but what one client of mine has decided to do for an ashp in a similar situation is just wait 6 months before applying for the rhi.  It will still meet the eligible new build criteria in 6 months time, so no gda required and no metering cost or meter reading effort.  Ofgem said to him this is what most do.
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Ted
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« Reply #2 on: December 19, 2014, 11:22:29 AM »

AIUI any annual payment for a metered installation cannot exceed the annual EPC deemed figure. I can't see anything that says this would be treated on a quarterly basis as, for example, it is possible to skip one of the quarterly reading submissions over the 7 years without any penalty. So I would expect that any adjustment against the deemed EPC maxima would be made only against the meter reading submission on the anniversary of the installation each year.

Doubtless the OFGEM RHI call centre would be able to provide a definitive answer - DomesticRHI@ofgem.gov.uk or 0300 003 0744
« Last Edit: December 19, 2014, 11:24:37 AM by Ted » Logged

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Ted
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« Reply #3 on: December 19, 2014, 12:56:36 PM »

Hah, well I've just looked at the Domestic RHI legislation and the method of calculation is actually laid out in there in detail at Article 28: Calculation of RHI payments where heat generated by a plant must be metered

http://www.legislation.gov.uk/ukdsi/2014/9780111109458

with supplementary calculations in Articles 29 - 32.

I've only read this about 5 times so far so have no idea what it actually means. Will get back once I have read it another ten times or so.
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JohnS
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« Reply #4 on: December 19, 2014, 01:26:29 PM »

Just had a look at it. 

I sometimes wonder who is capable of coming up with such unintelligible rubish?  Is there a special school for civil servants to go to to learn how to wrie such incomprehensible junk?

John
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Ted
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« Reply #5 on: December 19, 2014, 02:16:06 PM »

Exactly my thoughts as well, John.

Anyway I think I have worked through it all and it seems basically what I said before.

The RHI payment calculation is based on the meter reading until such time, within a 12 month period, as that figure goes over the EPC deemed value when it is maxed at that figure.

The crux in the legislation is this part at 28(4):

Quote
Where in any quarterly period, R is a figure which is 0 or higher and the sum of that figure and AP is greater than MaxP, the RHI payment for the quarterly period is calculated in accordance with the following formulaŚ

R = MaxP - AP

MaxP is the figure based on the deemed EPC and AP is the total payments in the current year to date.

For example:

EPC deemed figure is 16,000 kWh

q1 meter reading 8,000 kWh = RHI payment of tariff x 8000
q2 meter reading 6,000 kWh = RHI payment of tariff x 6000
q3 meter reading 4,000 kWh = RHI payment of tariff x 2000 (max of 16,000 now reached)
q4 meter reading 1,000 kWh = RHI payment of tariff x 0 (max of 16,000 already reached)

« Last Edit: December 19, 2014, 02:21:28 PM by Ted » Logged

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« Reply #6 on: December 19, 2014, 02:43:38 PM »

Of course I should add that this is the way that the legislation says it should work. OFGEM, in their wisdom, may have decided on a different way to implement it.
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GavinA
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« Reply #7 on: December 19, 2014, 10:41:19 PM »

Cheers ted, much appreciated. I hadn't found that section.
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GavinA
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« Reply #8 on: December 19, 2014, 11:00:40 PM »

I got caught out by this daft 183 day rule. As far as I knew that was intended for second homes / holiday homes, what the hell is the point in it applying to eligible new builds.

Bruce, it'd be ok except that the RHI rate for biomass drops in 12 days time.
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