Decision to issue The Renewable Energy Company Limited (Ecotricity) an enduring derogation for renewable Standard Variable Tariffs from the Default Tariff Cap

Publication date
1st August 2019
Information types
Policy areas

On 6 November 2018 alongside our decision to implement the default tariff cap licence condition we published our guidance on the process for requesting a derogation from the default tariff cap for renewable tariffs.

On 1 January 2019 we published our decision to issue The Renewable Energy Company Limited (Ecotricity) a temporary derogation from complying with standard licence condition 28AD of its gas and electricity supply licences for certain tariffs. This temporary derogation enabled the Licensee during the specific time period of the derogation to charge above the rates set by the default tariff cap for the Standard Variable Tariffs for which it applied for a derogation (the “Relevant Tariffs”). These are listed in Schedule 1 of the decision. On 31 March 2019 we published our decision to extend the temporary derogation until 1 September 2019.

The decision document sets out our decision to issue an enduring derogation for the tariffs specified. The Directions shall remain in force for the lifetime of the default tariff cap unless revoked or varied in writing earlier by the Authority.

Whilst we have provided an enduring derogation from complying with the default tariff cap licence condition, we have not assessed whether these tariffs provide good value to consumers, and we have not assessed whether the renewable costs or overall costs incurred by the Licensee have been efficiently incurred.