Guarantees of Origin (GoOs)
All EU member states must have a Guarantees of Origins (GoOs) scheme. In the UK, our version is called Renewable Energy Guarantees of Origin (REGO). Ofgem is required by legislation to recognise overseas European Union (EU) GoOs if they are presented to us for the purposes of Fuel Mix Disclosure (FMD) and Feed-in Tariffs (FIT) Levelisation.
On 24 December 2020 the UK and the EU announced it had reached a Trade and Cooperation Agreement (“the Agreement”). The Agreement covers a range of areas concerning the future relationship between the UK and the EU, including energy.
Ofgem will continue to work with the UK Government and energy stakeholders – domestically and in Europe – to implement the Agreement as it relates to energy and continue to ensure our regulatory framework remains fit for purpose and protects consumers.
The Government will ensure that Great Britain and Northern Ireland will continue to issue REGOs and accept Guarantees of Origin (GoOs) from EU member states following expiration of the Transition Period on 1 January 2021. This will allow electricity suppliers in the UK to continue to use REGOs and EU GoOs to comply with their Fuel Mix Disclosure (FMD) obligations.
With the exception of trading through the North Sea Link, implicit trading between GB and EU countries in Continental Europe is no longer possible following the end of the Transition Period. Only explicit trading evidence in relation to cross border trade between GB and Continental Europe will be accepted from 1 January 2021. Implicit trading evidence of EU GoOs through the Irish and the North Sea Link interconnectors is still permissible after 1 January 2021. More information on the types of the implicit and explicit trading evidence we expect to see to recognise EU GoOs can be found in Appendix 2 of the Guidance on presenting Guarantees of Origin (GoOs) document.
Government has indicated its intention to review this in 2021 so that, longer term, domestic recognition of Guarantees of Origin issued in EU countries will take place only on a reciprocal basis.
For the avoidance of doubt, as Norway is not an EU Member State, Ofgem is unable to recognise Norwegian GoOs for the purposes of FMD or Feed-in Tariff levelisation.
Use in Fuel Mix Disclosure and Feed-in Tariffs levelisation
GoOs label electricity from renewable sources to provide information to electricity customers on the source of their energy. They are used by suppliers for FMD compliance along with GB-issued REGOs to show how much renewable electricity they have supplied in the previous year.
GoOs are also used by suppliers to exempt themselves from some of their FIT costs via the FIT levelisation process.
How to get GoOs recognised by Ofgem
As Ofgem’s Renewables and CHP register is not compatible with overseas GoOs, they must be cancelled in another country’s register before being presented to us. In order to get them recognised, suppliers must read the Guidance on presenting Guarantees of Origin (GoOs) and follow the specified processes. Suppliers must submit an audit report alongside their presented GoOs. The audit report must be written in the standard of ISAE 3000.