Suppliers turning away from net metering as losses grow

Many of the country’s electricity suppliers do not intend to offer contract extensions for existing net-metering contracts as this supply category has developed into a loss-incurring service.

The energy ministry held a meeting earlier this week to discuss the issue with suppliers as well as officials from distribution network operator DEDDIE/HEDNO and RAAEY, the Regulatory Authority for Waste, Energy and Water, energypress sources informed.

Policymakers are examining possible revisions that could allow suppliers to recover additional costs more effectively, but no decisions have been reached, the sources added.

The meeting was held as a number of energy communities planning to develop net-metering systems to offset their members’ consumption have not been able to find suppliers for such contracts. It was the second meeting to be held on the matter.

According to suppliers, existing offsetting terms disregard the value of electricity involved, leading to losses for suppliers.

In practice, PV net-metering systems experience production peaks during midday hours, discharging excess production to the grid as a means of storage that enables usage, in accounting terms, during the evening hours, when PVs do not produce.

However, given the fact that consumers have entered into net-metering contracts with suppliers at specific prices, normally costlier energy of evening hours that is drawn from the grid to meet customer energy needs ends up being purchased by suppliers without this additional cost being recovered in any way.

A draft bill proposed by the energy ministry, currently under discussion in Parliament, is poised to bring significant alterations to self-production practices. Net-metering for residential PVs will be terminated May 15 and replaced by net-billing.