Feed-in Tariffs (FIT)

Enhancing our understanding of non-compliances on the FIT scheme 

Ofgem’s role is to protect consumers now and in the future by working to deliver a greener and fairer energy system.

Audits serve a crucial role in ensuring the integrity, accuracy, and compliance of the schemes we administer. The primary reasons for conducting audits under the FIT scheme include, amongst others:

• ensuring participants under the scheme are meeting the eligibility requirements set out in legislation.
• helping us to understand the level of non-compliance across the scheme’s population.
• deterring fraud and non-compliant activity under the scheme.
• ensuring FIT generators are adhering to the agreements in their accreditation.
• providing assurance that the scheme is being complied with and the scheme is achieving its aims. 
• providing valuable insights that inform our strategic planning, resource allocation, and FIT scheme improvements.
• fostering transparency and responsible behaviour among scheme participants.

What is non-compliance?

Non-compliance is an activity which does not comply with the scheme regulations, such as failing to comply with ongoing obligations, using non-compliant equipment, or mis-stated capacity concerns.

We have rigorous systems in place for the detection and investigation of non-compliance cases.

What actions can we take?

We take non-compliance extremely seriously. If you are found to be non-compliant, depending on severity, we may: 
•    suspend payments temporarily or withhold them permanently.
•    withdraw the installation’s accreditation.
•    recover overpayments.

Where overpayments have been made, we will seek to recover these amounts by offsetting them against future payments. Where this isn’t possible, we will instead request the money owed to be repaid.

Fraud

We also take fraud extremely seriously and have rigorous systems in place for the detection, prevention, and the deterring of fraud. We take firm action where there is evidence of fraud identified through an audit. 

Where there is strong evidence of wrongdoing, Ofgem reports the matter to Action Fraud and other law enforcement agencies.

If you have any suspicions of fraud within the FIT scheme, please contact us by emailing counterfraud@ofgem.gov.uk.

For further information, visit our Counter Fraud web page.

To help support you in any upcoming FIT audits, we recommend you:

• conduct regular internal self-assessments of your processes and records to identify and address potential issues proactively. 
• collect all relevant documentation prior to an audit taking place. This could include commissioning evidence, FIT invoices, metering details, single line diagrams (SLD), procedural manuals, and any other documents relevant to the audit scope.
• maintain an up-to-date accreditation application and ensure all changes are reflected in the application, such that when an audit takes place, the application reflects the current arrangements.
• review your internal processes and procedures ensuring they are well-documented, accurate, and consistently adhered to. 
• familiarise yourself with the specific scope and objectives of the audit.
• keep yourself up to date with the latest regulations and requirements.
• be transparent with auditors. If there are areas where questions might arise, address them openly and provide necessary context. 
• use the audit as an opportunity for improvement. Consider how audit insights can lead to enhanced processes, reduced risks, and overall assurance that you’re receiving the right payments.

Application amendments after an audit

Following the closure of an audit, the audit findings may state that you are required to make updates and corrections to your accreditation application. Please note these changes are expected to be actioned as per the timeline outlined on closure letters. However, no application amendments should be made until the audit is closed and you have been informed.

Ofgem also have several resources to help support generators. Please see the links below that provide specific guidance on essential documents that are required for audits.

For specific queries or additional support, please feel free to reach out to our dedicated support teams:

General enquiries: Renewable.Enquiry@Ofgem.gov.uk
Feed-In Tariff audit queries: FITAuditandRisk@ofgem.gov.uk