- Publication date
- 5th January 2018
- Information types
- Policy areas
We redistributed the 2016-17 RO late payment fund on 20 November 2017. We paid a total of £18,513,619 to suppliers who presented Renewables Obligation Certificates (ROCs) this year. The final recycle value for 2016-17 is £5.10.
Suppliers have until 1 September to present ROCs to us or make buy-out payments to meet their obligations. Suppliers who have not met their obligations in full by this date must make late payments by 31 October. Late payments incur a daily interest penalty, at an annualised rate of 5% + Bank of England base rate (so 5.25% this year). This is specified in RO legislation. Fifteen suppliers made late payments this year.
As with the buy-out fund (which we redistributed in October), the amounts we redistributed included interest earned on the funds while in our accounts, and are rounded down to the nearest pound.
Details of the late payments we received from suppliers and the amounts we redistributed for each RO scheme are in Table 1 below:
|Obligation||Late payments made by suppliers||Late payments redistributed|
|England & Wales||£16,583,895.66||£16,587,041.00|
We redistributed late payments to the suppliers on the same basis as the buy-out fund, ie in line with the proportion of the total ROCs they presented across the three schemes. Therefore each supplier received the same proportion of the late payment fund as they did from the redistribution of the buy-out fund – see the link above.
Suppliers received £4.89 per ROC presented after the redistribution of the buy-out fund. From the redistribution of the late payment fund, they have received an extra £0.21 per ROC. This means that the final recycle value per ROC for the 2016-17 obligation period is £5.10, to the nearest penny. The exact value is £5.09850879371621.
Only included this because (based on past experience) one/two suppliers have previously asked for the exact recycle value.
Final recycle values (ie after redistribution of both buy-out and late payment funds) from recent years are in Table 2 below:
|Obligation period||Final recycle volume|
* No redistribution of buyout/late payment funds took place during 2015-16 Compliance round due to insufficient money being available - hence the final recycle value is zero pound.