Renewable Obligation: Number of ROCs presented towards 2015/16 UK obligation
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Publication date
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RO
On 2 September 2016 we published the total UK obligation of 84,439,465 Renewables Obligation Certificates (ROCs). Suppliers were able to comply with their obligations by presenting ROCs, making buy-out payments at £44.33 per ROC or through a combination of both. The deadline to present ROCs was 1 September. Prior to this deadline, suppliers presented 84,384,727 ROCs towards this obligation.
Suppliers who did not meet their entire obligation through presenting ROCs will, between them, meet the 54,738 ROC shortfall through a combination of buy-out and late payments. The deadline to make buy-out payments was 31 August 2016 and the deadline to make late payments is 31 October 2016. Details of the obligations and total payments for each RO scheme are shown in the table below.
There was a shortfall of £1,850,781.74 in the England & Wales, Scotland and Northern Ireland buy-out funds combined. This was due to five suppliers not meeting their total obligations by the above deadlines and hence owing late payments. Late payments will include interest paid by the suppliers at an annualised rate of 5.25% (5% + Bank of England base rate).
Prior to redistributing the buy-out fund and late payment fund to suppliers we must withdraw our and the Northern Ireland Utility Regulator’s (UREGNI) administration costs. We will publish a note on the extent of the 2016/17 RO administration costs in due course, however, this year, combining the buy-out and expected late payment funds will not provide sufficient funds to cover them. As such, we will not carry out a redistribution of either fund this year.
We are working with the Department for Business, Energy & Industrial Strategy (BEIS), Scottish Government, Department for the Economy and UREGNI to consider how the shortfall in buy-out fund will be addressed in the context of administration costs.