The Renewables Obligation (RO) buy-out price (£44.33) and mutualisation ceilings 2015-16

Publication date
12th February 2015
Information types
Policy areas

The buy-out price for the 2015-16 obligation period is £44.33 per Renewables Obligation Certificate (ROC). This is the amount suppliers will need to pay for each ROC they do not present towards compliance with their 2015-16 obligation.

The mutualisation ceilings for the 2015-16 are £267,035,558.91 in England and Wales and £26,703,555.88 in Scotland (mutualisation does not apply in Northern Ireland). Mutualisation will be triggered in the unlikely event of a relevant shortfall1 in the buy-out fund. This has not occurred in any obligation period so far.

We update the buy-out price and mutualisation ceilings annually to reflect the average monthly percentage change in the Retail Prices Index (RPI) during the previous calendar year.2

Buy-out prices and obligation levels for recent years are shown in Table 1 below.

Obligation period (1 April - 31 March) Buy-out price Obligation for England & Wales and Scotland (ROCs/MWh) Obligation for Northern Ireland (ROCs/MWh)
Table 1
2009-2010 £37.19 0.097 0.035
2010-2011 £36.99 0.111 0.0427
2011-2012 £38.69 0.124 0.055
2012-2013 £40.71 0.158 0.081
2013-2014 £42.02 0.206 0.097
2014-2015 £43.30 0.244 0.107
2015-2016 £44.33 0.290 0.119

Contact: RO Compliance Team

Email: rocompliance@ofgem.gov.uk

Tel: 020 7901 7275

 

Notes
  1. The definition and amounts of relevant shortfall for each obligation period are in Article 48(3) and Schedule 3 in The Renewables Obligation Order 2009 and The Renewables Obligation (Scotland) Order 2009.
  2. The average RPI percentage change during the 2014 calendar year is 2.4% (source: Office of National Statistics).