Renewables obligation level calculations: 2023 to 2024
The level of the Renewables Obligation for 2023 to 2024, and the underpinning calculation methodology.
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Update: 20 December 2022
This guidance document notes that we consulted in 2022 on raising the current exemption for Energy Intensive Industries (EIIs) from the indirect costs of the Renewables Obligation (RO) from its current level of up to 85% to up to 100%. The consultation proposed that any increase, if implemented, would take effect from 1 July 2023. If that had happened, the published level of the RO would have been amended to reflect the increase.
However, we’ve now determined that the current EII Exemption will not be increased for the 2023 to 2024 obligation year and will remain at 85% for the whole of that period, so this document will not be updated.
We’ll set out further plans for the EII exemption in the government response to the 2022 EII consultation, which will be published in due course.
The Renewables Obligation scheme places an annual obligation on UK electricity suppliers to present to Ofgem (the scheme’s administrator) a specified number of Renewables Obligation Certificates (ROCs) per megawatt hour of electricity supplied to their customers during each obligation period.
The Secretary of State is required to publish the level of the obligation (in ROCs per megawatt hour) 6 months before the start of each obligation period (which runs from April to March).
This note sets out the level of the obligation for the 2023 to 2024 period and explains the underpinning methodology.
Last updated 20 December 2022 + show all updates
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The current EII Exemption will not be increased for the 2023-2024 obligation year and will remain at 85% for that period.
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First published.