The Renewables Obligation buy-out fund 2013-14

Publication date
17th October 2014
Information types
Policy areas

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
 
Obligation Total Obligation
(ROCs)
ROCs presented
by suppliers
Percentage of obligation
met by ROCs

Buy-out payments made by suppliers                      

Buy-out redistributed
England & Wales (RO) 55,378,383 54,596,449 98.6% £26,713,829.98 £24,106,873
Scotland (ROS) 5,702,153 5,431,769 95.3% £11,359,812.86 £10,251,167
Northern Ireland (NIRO) 777,638 729,032 93.7% £2,042,424.12 £1,843,148
Total 61,858,174 60,757,250 98.2% £40,116,066.96 £36,201,188

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

Licence Percentage of total ROCs presented/buy-out funds received (all schemes)
AXPO UK Limited 0.10%
BES Commercial Electricity Limited 0.10%
British Gas Trading Limited 14.12%
Dong Energy Power Sales UK Limited 0.06%
Dual Energy Direct Limited 0.11%
E.ON Energy Limited 8.69%
E.ON UK Plc 7.70%
Economy Energy Trading Limited* <0.01%
The Renewable Energy Company Limited  (owned by Green Energy) 0.10%
British Energy Direct Limited (owned by EDF) 1.37%
EDF Energy Customers Plc 16.21%
Eneco energy Trade BV 0.02%
ESB Independent Energy NI Limited (t/a Electric Ireland) 0.20%
F & S Energy Limited* <0.01%
First Utility Limited 0.41%
Gazprom Marketing & Trading Retail Limited 0.49%
GDF Suez Marketing Limited 3.73%
Good Energy Limited 0.06%
Garsington Energy Limited (owned by Green Energy Ltd) 0.03%
Haven Power Limited 3.13%
Hudson Energy Supply UK Limited 0.12%
LCC Power Limited 0.03%
MA Energy Limited* <0.01%
Opus Energy (Corporate) Limited 0.62%
Opus Energy Limited 0.48%
OVO Electricity Limited 0.27%
Power4All Limited 0.43%
Power NI 0.45%
Coulomb Energy Supply Limited 0.02%
Electricity Plus Supply Limited (owned by Npower) 0.63%
Npower Direct Limited 0.80%
Npower Limited 11.24%
Npower Northern Supply Limited 2.71%
Npower Yorkshire Supply Limited 0.39%
Scottish Power Energy Retail Limited 7.18%
SmartestEnergy Limited 1.71%
SSE Energy Supply Limited 13.95%
SSE Airtricity Energy Supply Limited 0.36%
Co-Operative Energy Limited 0.20%
Total Gas & Power Limited 1.61%
Viridian Energy Supply Limited (t/a Energia) 0.17%

*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