What is EMR?
EMR stands for Energy Market Reform. It is a policy created by the government to incentivise investment in low carbon technologies such as renewable energy.
It is a levy applied to consumers which has been designed to encourage users to reduce their consumption or make a contribution to meet future demands.
EMR will be implemented by way of additional charges onto your electricity bills to meet the £100BN of capital investment the UK require to meet future projected energy demand.
Albeit a gradual ascent, the next year or two is expected to see this ‘tax on consumption’ rise sharply. The more you consume, the more you will be charged.
Consumers could see as much as a 42% increase in energy costs as a result of EMR and other related charges.
Provide or Reduce?
The thinking behind this reform is to charge electricity customers to either:
- PROVIDE funds to the 100BN investment pot needed to meet the infrastructure demands
- Encourage them to REDUCE their carbon consumption and use secure future-proof technologies
As consumers, we have two options –
Provide: In addition to our energy costs, pay a consumption based levy to fill the coffers pot.
Reduce: Make changes to our consumption. Install technologies to future-proof our businesses and homes. Renewable energy solutions to meet our requirements will help us to avoid high EMR charges, reduce our energy bills and grid consumption.
What’s in it for me?
By installing a renewable technology to generate your own electricity you will become a ‘Generator’ and you may also be able to obtain CfD (Contract for Development) payment alongside a reduced ERM contribution.
CfDs are payments made to the Generator by a Low Carbon Contracts Company (LCCC) for renewable electricity sent back to the network for use at times of peak demand or shortage.
The cost of the CfD payments to generators will incidentally be met through the EMR related charges on consumer’s bills.
If you remain dependent on the grid, and as a result of EMR you will effectively be funding consumers who are renewable, paying less EMR and being paid CfD’s!
Call us today on 01245 227100 or contact us and we will help you to design a system to suit your needs and combat avoidable charges.