Plutus Powergen Share Discussion Threads

[ibug] 20/6/2017 10:24

UK Energy Regulator Plans to Cut Payments to Embedded Generators

20/06/2017 9:20am Dow Jones News


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By Ian Walker


LONDON--U.K. energy regulator Ofgem announced plans Tuesday to lower the payment that some small electricity generators receive for producing electricity at peak times by between 3 pounds ($3.80) and GBP7 a kilowatt over the next three years, as it believes the payment distorts wholesale and capacity markets.

Currently, small energy generators with less than 100 megawatt capacity, get GBP47 a kilowatt from suppliers for helping them reduce charges to use the transmission network. This is in addition to the price these generators get for selling their electricity, Ofgem said, adding that the payment cost customers around GBP370 million last year.

Ofgem Chief Executive Dermot Nolan said: "We are concerned that the current level of the payment is distorting the market and is set to increase further."

"Our role is to protect customers and make sure costs are kept as low as possible. That is why we are taking action by reducing this payment."


-Write to Ian Walker at [e-mail]; @IanWalk40289749

[marvelman] 19/6/2017 17:47

Savvy

Non order book trades not being reported today by the LSE...only orders on the book have been reported on all stocks.

...not been invested here for quite some time but do still take an interest and wish those still invested the very best.

[1savvyinvestor] 19/6/2017 17:31

My main three shares on AIM had zero trades today !

[maybesum] 19/6/2017 08:00

FIve 20MW sites under construction ____ so funding is clearly in place,,...otherwise they could not be built out.

[codydotcom] 15/6/2017 08:50

No impact, apart from there being 150k less to share out

[1savvyinvestor] 14/6/2017 23:59

That is a misreading in my opinion . The £150k per site is a cost to the spvs but goes straight to the plutus bottom line . It has no impact on the share split of 55/45

[codydotcom] 14/6/2017 17:46

On a different topic, but one which has been raised here lots.

The management fee of £150k per site, will be paid to PPG by each of the SPVs. This means that the money available to return to shareholders of those SPVs (of which PPG is 44.5%) is reduced by £150k.

Absent a management contract, PPG would have received 44.5% of that £150k anyway. Thus, they are only benefiting to the tune of £83k per year, for each management contract.

Unless I'm mistaken.

You could argue that they would need to pay another firm the same fee to manage the asset, and i have some sympathy for that argument (though could argue the toss over the level). I just feel that viewing it as an additional £150k/year/site is a bit simplistic. The income reduces the money available in the SPVs which could be returned to the shareholders

[codydotcom] 14/6/2017 17:32

Fair enough Savvy. The use of the term 'base case in the blueprint' is very specific, and makes me concerned that what they are actually saying is the upside is compromised, but we can still repay the investment. I guess the truth will out, over time.

[1savvyinvestor] 14/6/2017 16:33

I think explanation of income remaining roughly the same in projections is as a result of increased payments from ffr above that anticipated. Combined with capacity mechanism contracts this should be good for all bio diesel sites

[bishopawn] 14/6/2017 14:46

The Company benefits from a fifteen year capacity contract commencing in 2018/19, secured in the December 2015 Capacity Auction. Additionally, it successfully tendered for a further one year contract for capacity delivery in 2017/18 in the T-1 auction held in December last year. This auction cleared at £6.95 per kW and will generate additional income of £130,000.

The regulatory environment remains challenging, with OFGEM proposing significant changes to “embedded benefits” which would eliminate Triad avoidance payments. Despite this, it is currently expected that returns will be at or above the base case in the blueprint due to the Company securing the 15 year capacity contract.

[codydotcom] 14/6/2017 14:31

Plymouth was awarded a contact in the December 2015 T-4 CM auction. This was for 18.908MW @ £18/kW/year. This revenue kicks in from 2019, and will be £340k/year. So it certainly offsets some (say 35%) of the potential triad loss. This revenue was always budgeted for, so i don't see how returns are still expected to be at or above original budgeting.

I am not aware of any new rules that potentially reduce capacity payments.

[bishopawn] 14/6/2017 14:21

The OFGEM decision, if it goes ahead, would bring down the Triad payments close to zero, but NOT UNTIL the winter of 2020/2012.
Despite this negative regulatory change, returns are still expected to be at or above original budgeting.
However, Plutus Powergen does have the benefit of a 15 year capacity contract secured in the December 2016 auction, and income from this should be more than the loss of Triad income.
As a recipient of a 2015 capacity contract, Plutus Powergen will not be affected by new rules that potentially reduce capacity payments.

[codydotcom] 14/6/2017 13:49

of which about £900k would be Triad revenue?

[bishopawn] 13/6/2017 23:28

Rumours from the Rockpool side of things have it that the Plymouth Site had revenues in the region of £1 million or a little over.

[1savvyinvestor] 12/6/2017 14:24

Dear bewarepaul, this board tries to be informative without have constant updates on the share price. It would be great if we could restrict posts to information about the company and its prospects rather than hourly bulletins about where the mid price may or may not be! Glad you are enthusiastic but this is a long term investment which will reward strong holders in my opinion.

[ibug] 12/6/2017 12:47

NEWS FROM OFGEM VERY SOON NOW THE ELECTION IS OVER --- the Government will surely want to clear this off quickly to prepare for other projects...we might see the share price get back to the 3p range after that imo.

[montynj] 12/6/2017 12:33

At the end of the day, if one is forced to pay up now is no big deal in the long term scheme of things...cuz the share price will be substantially higher in 12 to 18 months...

[basem1] 12/6/2017 10:59

Try again at 1.59 and you should be ok.

[roddyb] 12/6/2017 10:56

I just tried £2.5k fill/kill at 1.56p and no joy - there is absolutely no stock available this morning. Is this normal?