Flowgroup plc MicroCHP Feed-in Tariff (FIT) update (3930W)
February 09 2017 - 2:00AM
UK Regulatory
TIDMFLOW
RNS Number : 3930W
Flowgroup plc
09 February 2017
Flowgroup plc
("Flow" or the "Company" or the "Group")
MicroCHP Feed-in Tariff (FIT) update
Flowgroup plc (AIM: FLOW), which provides a range of innovative
energy technologies, energy supply and energy services, notes the
announcement yesterday by the Government of its conclusions
following its Feed-in Tariff review.
In May 2016, the then Department of Energy and Climate Change
(DECC), now part of the Department for Business, Energy and
Industrial Strategy (BEIS), published a consultation document (the
"Consultation") which included a review of support for the microCHP
Feed-in-Tariff (FiT), whereby it was suggested that the number of
qualifying microCHP units would be capped at a much lower level,
thereby reducing the support significantly. As per our previous
company updates, the outcome of this Consultation was important for
the future of our microCHP business. BEIS has published its
response to the Consultation, with the following results:
-- The tariff rate remains the same at 13.61p/kWh
-- The proposed reduction in the number of units supported by
the FiT from 30,000 units to 3,500 has been amended to a reduction
to 15,000 over the remaining period of the FIT (April 2017 and
April 2019)
-- Revised cap of 15,000 is based on 20MW installed capacity
with assumed average power output of 1.3kWe
-- The proposed budget cap for microCHP of GBP1m has been
changed to GBP9.8m of the overall GBP100m FiT cap
The changes come into effect on 1 April 2017.
Flowgroup welcomes yesterday's announcement, which it believes
is the result of significant co-ordinated industry pressure, in
which the Company played a key role. The Company continues to
believe that the increase in manufacturing costs of the Flow
microCHP, caused by the recent fall in the value of Sterling
against the Euro and the US Dollar, makes the microCHP model
uneconomic in the UK market in the near term. However, continuation
of the microCHP FiT at the above rates and volumes, and its
applicability to the Flow microCHP Boiler, does give the Group the
opportunity to potentially deploy more of its manufactured microCHP
stock into the UK market. While the majority of this stock is
planned to be used in European trials with the Group's partners,
some could be installed in UK homes, generating more operational
data as well as customer feedback, all of which will assist with
our plans for a future European launch.
Flowgroup plc www.flowgroup.uk.com
Tony Stiff, Group Chief Executive Tel: +44 (0)20 3137
Officer 4525
Nigel Canham, Chief Financial
Officer
Cenkos Securities plc (NOMAD Tel: +44 (0)20 7397
and Broker) 8900
Stephen Keys (Corporate Finance)
Julian Morse (Sales)
Walbrook PR Ltd (Media Tel: +44 (0)20 7933 8780
Relations) or flowgroup@walbrookpr.com
Paul McManus Mob: +44 (0)7980 541
893
Nick Rome Mob: +44 (0)7748 325
236
This information is provided by RNS
The company news service from the London Stock Exchange
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