Renewable Obligation: Number of ROCs Presented Towards 2017/18 UK Obligation

Publication date
22nd October 2018
Information types
Policy areas

Total obligation: 117,842,123 ROCs.

The Renewables Obligation (RO) requires licensed electricity suppliers to source a proportion of the electricity they supply to UK customers from renewable sources. We set suppliers’ obligations as a number of Renewables Obligation Certificates (ROCs). The obligation levels for 2017/18, announced by the Department for Business, Energy and Industrial Strategy (BEIS) on 1 October 2016 are:

  • 0.409 ROCs per MWh of electricity supplied to customers in England, Wales and Scotland
  • 0.167 ROCs per MWh of electricity supplied to customers in Northern Ireland

Using these obligation levels and multiplying by the total electricity supplied (MWh) to UK customers during this obligation period (1 April 2017 – 31 March 2018), the total obligation for 2017/18 is 117,842,123 ROCs. Split out for each obligation this is:

  • 105,683,001 ROCs in England and Wales
  • 10,838,475 ROCs in Scotland
  • 1,320,647 ROCs in Northern Ireland.

Suppliers were able to meet their obligations for 2017/18 by 1 September 2018 (31 August for buy-out payments) by:

  • Presenting ROCs to us
  • Making a buy-out payment of £45.58 per ROC
  • Using a combination of ROCs and a buy-out payment.

Any suppliers who did not meet their obligations in full by 1 September need to make a late payment by 31 October.

We have recently redistributed the Renewables Obligation (RO) buy-out fund for 2017/18. Details of the obligations and total payments for each RO scheme are shown in the Table 1 below.

Table 1

Obligation

Total Obligation (ROCs) ROCs presented by suppliers Percentage of obligation met by ROCs Buy-out payments made by suppliers (rounded to nearest pound) Buy-out redistributed
England & Wales (RO) 105,683,001 92,054,861 87.1% £526,038,495 £524,074,398
Scotland (ROS) 10,838,475 10,100,262 93.2% £26,693,512 £24,746,854
Northern Ireland (NIRO) 1,320,647 1,065,756 80.7% £10,801,229 £10,724,439
Total 117,842,123 103,220,879 87.6%

£563,533,237

£559,545,6

Suppliers that presented ROCs towards their obligations and have fully discharged their obligation received buy-out fund recycle payments on 16 October 2018. Suppliers that are due to make a late payment will receive any recycle payment owed to them once their obligation has been discharged.

The amounts to be redistributed are shown in the far-right column in Table 1. We reached these values by withdrawing our and UR's administration costs, factoring in interest and rounding down the redistribution amounts to the nearest whole pound. Suppliers received approximately £5.42 for each ROC they presented. The proportion of the total ROCs each supplier presented, and therefore the share of buy-out payments they received or are owed, is shown in Table 2 (rounded to 2 decimal places).

Table 2

Supplier Group

% Proportion of ROCs presented

AXPO UK Limited

0.46%

BES Commercial Electricity Limited

0.19%

Bristol Energy Technology & Services (Supply) Limited

0.02%

British Gas Trading Limited

10.57%

Brook Green Trading Limited

0.01%

Bryt Energy Limited

0.15%

Budget Energy Ltd

0.02%

Bulb Energy Ltd

<0.01%

CNG Electricity Limited

<0.01%

Co-Operative Energy Limited

0.65%

Corona Energy Retail 5 Limited

<0.01%

Dong Energy Power Sales UK Limited

1.13%

Dual Energy Direct Limited

0.31%

E (Gas and Electricity) Limited

0.17%

E.ON UK Plc

12.68%

Eco Green Management Ltd

<0.01%

Ecotricity Group Limited

0.30%

EDF Energy plc

14.29%

Electraphase Ltd

<0.01%

Eneco energy Trade BV

0.15%

ENGIE Power Limited

3.79%

ESB Independent Energy (NI) Ltd

0.15%

F & S Energy Limited

0.01%

First Utility Limited

1.17%

Flow Energy Limited

0.07%

Gazprom Marketing & Trading Retail Limited

0.50%

Good Energy Limited

0.19%

Green Energy (UK) plc

0.04%

Green Network Energy Limited

0.08%

Haven Power Limited

5.69%

Huddle Energy Limited

<0.01%

Hudson Energy Supply UK Limited

0.74%

LCC Power Limited

0.05%

Limejump Energy Ltd

<0.01%

MVV Environment Services  Limited

<0.01%

npower group plc

13.74%

Octopus Energy Limited

<0.01%

Opus Energy Limited

1.82%

OVO Electricity Limited

0.67%

Power NI Energy Ltd

0.40%

Scottish Power Energy Retail Limited

8.09%

Shell Energy Supply UK Limited

<0.01%

SmartestEnergy Limited

2.79%

SO Energy Trading Limited

0.03%

Solarplicity Supply Limited

<0.01%

Squeaky Clean Energy Limited

<0.01%

SSE Energy Supply Limited

14.13%

Tonik Energy Limited

0.04%

Total Gas & Power Limited

3.74%

Tradelink Solutions Limited

<0.01%

Utilita Energy Limited

0.67%

Viridian Energy Supply Ltd

0.15%

Yu Energy

0.10%

There was a combined shortfall of £102,903,066.44 in the England & Wales, Scotland and Northern Ireland buy-out funds. This was due to thirty-four suppliers not meeting their total obligations by the above deadlines. These suppliers consequently owe late payments.

The deadline for suppliers to make late payments is 31 October 2018 and we will redistribute them before 1 January 2019. This will include interest paid by the suppliers at an annualised rate of 5.75% (5% + Bank of England base rate) as well as interest earned on the funds while in our accounts. When we redistribute the late payments we will also confirm the final recycle value, which will include an extra amount on top of the £5.42.

For more information, contact: RECompliance@ofgem.gov.uk.