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Renewables
23/10/2018
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Supplier surcharge end prompts new RES output payment fears

Renewable energy producers fear more RES special account deficit figures and payment delays in the future as a result of an energy ministry decision to abolish a RES-supporting supplier surcharge at the end of 2018, a year earlier than planned.

A touted 50 percent supplier surcharge rebate for amounts contributed by suppliers to the RES special account in 2018, up from 30 percent, has also raised the concerns of renewable energy producers.

RES producers dread payment delays as they believe the RES special account is not yet robust enough to handle such revisions.

The existing latency period for RES output payments has already stopped shrinking as a result of an initial supplier surcharge reduction, effective as of April 1, RES producers have pointed out. Signs of greater delays have already emerged but have been restricted by higher System Marginal Price (SMP) levels, RES producers added.

RES output payments currently take over 100 days to settle once a month’s production period has been completed.

 

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