AN energy dispute between a Methodist church and energy regulator Ofgem, seems to have come about due to a series of misunderstandings.

It is now being looked at by the Energy minister in the hope that he can suggest a fair resolution for all concerned.

Kingsbridge Methodist church, in Fore Street, installed 28 solar photovoltaic panels on its roof last July and – under the Feed in Tariff scheme, to which it applied at the time of installation – was set to receive 21p per unit of energy produced for 25 years.

However, following a series of delays, and the Government's drop in tariff rates, it has been left in limbo about what rate it will actually receive.

At the end of November last year – four months after the church's application – when the standard tariff rate dropped to 19p over 20 years, the church received a letter from EDF energy informing them that in order to qualify for the FIT scheme, a financial incentive for renewable generators, they were required to produce an energy performance certificate.

The church had a certificate drawn up by their independent assessor but, because applicants to the FIT scheme only receive the set rate at the time that their application is accepted rather than at the time of applying, Ofgem was only able to offer them the 19p rate – a £30,000 total loss for the church when compared with July's rate of 21p.

What ensued was a dispute between independent assessor BRE and Ofgem, as to whether or not an EPC is necessary for the church.

David Monk, from the Methodist church, said: 'Whatever the outcome of the discussions, it still does not excuse the four month delay by EDF energy in processing our application and then treating it as if it was received in November rather than July, when we sent it recorded delivery.'

A spokesperson for EDF energy said of the four-month delay: 'It took time to process applications for registration because of the very high number we received across the country.

'We make it clear at the outset, in the application documents, that we can't accept responsibility for delays that can occur.'

The church have now been told that if the issue is not resolved soon, they could be facing an even lower rate of 9p per unit.

Mr Monk added: 'If we only get the 9p tariff then we stand to make a loss overall for the project as the income will not meet the cost of the loan to finance the scheme.'

An Ofgem spokes-man said: 'An application by Kingsbridge Methodist church for the FIT was received by EDF in July 2012.

'Following review of the application by EDF, it transpired that an EPC had not been provided in line with FITs legislation and published Ofgem guidance – the church was therefore not eligible for the high rate of the FIT.

'This is in compliance with FIT legislation, which states that all buildings which are eligible for an EPC, must obtain one at or before the eligibility date of the installation for the higher rate of FIT.

'There is a dispute resolution process (published by DECC), which states for disputes such as this the installation owner should raise first with the FITs Licensee and, if still not satisfied with the outcome, should be raised with the Energy Ombudsman.

'The church should follow this process if they still have a grievance.'

Mr Monk added: 'One of our questions is why did it take EDF four months to contact us? Ofgem should recognise that. They should tell EDF that their delay has caused this.

'They can't ignore the four months it took EDF to notify us. They have a duty to look at that.

'By continually altering the tariff rate, we are being bullied into accepting a lower tariff, which we will not do.'

Mr Monk has written to local MP Dr Sarah Wollaston to get her support.

She has contacted the Minister responsible for FITs, the Rt Hon Gregory Barker MP at the Department for Energy and Climate Change, raising the church's concerns.

It is hoped he will be able to come up with an amicable solution.