The Feed-in Tariff (FiT) is a government scheme designed to incentivise the use of renewable and low-carbon electricity generation technologies, by offering payments to households and businesses that produce their own electricity using renewable technologies. The scheme is paid for by participating licensed electricity suppliers, and this is passed on to all customers in their energy bills.

After the collapse of Spark Energy and Extra Energy there has been a shortfall in the payments made to the government by the suppliers. The shortfall will be recovered by distributing it across all of the suppliers in a process called mutualisation.

Who will be impacted?

Customers on a Pass-Through contract will see the additional charge reflected in their energy bill. This type of contract means customers pay for third party charges such as the FiT, which is charged to suppliers who pass them on in your contract. Your supplier may add this additional charge to your December bill and should notify you if that is the case.

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