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Post by optymystic on Jun 29, 2018 20:34:55 GMT
Was hoping for some closure on this, to wait so long and still not really understand the problem. Its quite straightforward really. In common with many green, sustainable and environmentally friendly initiatives, M********* V***** CHP is a subsidy farming operation highly dependent on government subsidies. Without that revenue the business doesn't work. Possibly in the light of Arlene Foster's infamous Cash for Ash programme OFGEM has become somewhat twitchy about the proportion of M********* V***** CHP revenue, or anticipated revenue, coming from subsidy. Doubtless advocates for M********* V***** CHP and Abundance will be seeking to establish whether or not OFGEM is applying this criterion consistently across the range of initiatives it funds. Indeed Abundance may in passing have acquired a certain amount of expertise in that subject.
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Post by optymystic on Jul 7, 2018 8:46:16 GMT
M********* V***** CHP investors meetings this coming week. I will be present at Rotherwas on Wednesday 11th at 3.00 pm.
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Post by justdabbling on Jul 9, 2018 8:50:17 GMT
It’s good to learn that you’ll be attending. It’s impossible for me as I am working abroad this week so now I have a chance of finding out how it goes and maybe you’ll be able to hint at whether there is information that cannot be put in official communications. I wonder who is funding the legal action/advice and how much can be afforded, or maybe a ‘No win, no fee’ case?
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IFISAcava
Member of DD Central
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Post by IFISAcava on Jul 10, 2018 10:16:27 GMT
That warm fuzzy feeling afforded by investing via Abundance seems to be rapidly cooling and sharpening
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Steerpike
Member of DD Central
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Post by Steerpike on Jul 10, 2018 10:35:09 GMT
Hey CHP investors! Remember that Biomass debenture that you invested in about two and a half years ago?
Well that is ****ed as well, sorry.
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IFISAcava
Member of DD Central
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Post by IFISAcava on Jul 10, 2018 10:39:46 GMT
Hey CHP investors! Remember that Biomass debenture that you invested in about two and a half years ago? Well that is ****ed as well, sorry. And suspended for secondary trading
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scc
Member of DD Central
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Post by scc on Jul 10, 2018 12:14:42 GMT
Contagion. I wondered if that might happen.
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Post by optymystic on Jul 11, 2018 17:33:50 GMT
Just back from a depressing trip to Rotherwas. The news was not good. I guess there were about a dozen investors in attendance, presumably fewer than at the London meeting.
There will be a report from Abundance of the meetings.
Ofgem has rejected the essential RHI funding request citing regulation 34(p) "they must not generate heat for the predominant purpose of increasing their periodic support payments". In other words Ofgem has ruled that MV CHP is a subsidy farming operation. Both Abundance and MV CHP take the view that this is an unsupported, unevidenced and novel interpretation of the rules not applied elsewhere. While Abundance and MV CHP are both in negotiation with Ofgem in so far as Ofgem is negotiating, the possibility of a legal challenge to the Ofgem is under consideration and this may require further funding
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liso
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Post by liso on Jul 11, 2018 19:36:39 GMT
Thank you for sharing this information, depressing though it is.
It is hard to know what went wrong. Was the project flawed from the beginning? Was there a misunderstanding? Did anyone mislead? Are Ofgem being wilfully unreasonable?
Abundance may want to pursue a legal challenge to clarify these and other questions, not just for their investors, but also to protect their own reputation. The financial losses to investors in the MV projects will dent that.
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scc
Member of DD Central
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Post by scc on Jul 12, 2018 23:07:48 GMT
My suspicion is that the rules were always open to interpretation - and that Ofgem has decided to tighten up on their application. Or that M*** V**** CHP pushed their luck. Might not even be the actual application which caused a closer examination, but the number and size of them in a particular locality.
As I've previously suggested, there could be a paper/electronic trail in Ofgem on any tightening and a FOI request would likely unveil it. I'd consider making the request myself, but wouldn't exactly know how to frame it or know if would be any use in "negotiations".
But for the moment, any future CHP projects must be off the table which might be exactly what was hoped for by the powers that be.
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Post by GentlemansFamilyFinances on Jul 18, 2018 11:56:45 GMT
At least they are taking a proactive interest in the matter.
Let's see how this one plays out.
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Post by GentlemansFamilyFinances on Jul 19, 2018 8:57:12 GMT
Got an update yesterday.
Legal counsel appointed and communication with Ofgem commenced with a reply expected 23rd July.
Hopefully this will come to an early conclusion.
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liso
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Post by liso on Jul 19, 2018 9:45:18 GMT
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Post by GentlemansFamilyFinances on Jul 19, 2018 9:49:14 GMT
by email last night.
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liso
Member of DD Central
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Post by liso on Jul 19, 2018 10:27:36 GMT
Checked now with Abundance. They say yesterday's update was to MV Bi****s lenders (which I'm not), not to CHP lenders, who already had the info. Err, not quite!
Useful to know that counsel has been appointed
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