The Renewables Obligation buy-out fund 2013-14
Data,
Correspondence and other
Publication date
Scheme name
RO
This week we have redistributed the Renewables Obligation (RO) buy-out fund for 2013/14. As we confirmed last month, the total obligation for electricity suppliers in the UK was 61,858,174 ROCs. Suppliers were able to comply with their obligations through presenting ROCs, making buy-out payments at £42.02 per ROC, or through a combination of both. The deadlines for submission were 1 September 2014 to present ROCs and 31 August 2014 to make buy-out payments. Details of the obligations and total payments for each RO scheme are shown in the table below.
Table 1
Suppliers that presented ROCs towards their obligations received buy-out fund recycle payments on 14 October 2014, as shown in the far-right column in Table 1. We reached these values are withdrawing our and UREGNI's administration costs, factoring in interest and rounding the redistribution amounts to the nearest whole pound. Suppliers received approximately £0.60 for each ROC they presented (the 'recycle value'). The proportion of the total ROCs each supplier presented, and therefore the share of buy-out payments they received, is shown in Table 2.
Table 2
*Presented under 0.01% of the total ROCs
There was a shortfall of £6,144,759.52 in the England & Wales and Scotland buy-out funds combined (there was no shortfall in Northern Ireland). This was due to five suppliers not meeting their total obligations by the above deadlines and therefore owing late payments. We expect to redistribute the late payment funds in November 2014, which will include interest paid by the suppliers at an annualised rate of 5.5% (5% + Bank of England base rate) as well as interest earned on the funds while in our accounts. There will be a small amount added to the recycle value when we redistribute the late payments.
Contact: rocompliance@ofgem.gov.uk