Renewables Obligation (RO) Buy-out Price, Mutualisation Threshold and Mutualisation Ceilings for 2022-23
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Publication date
Scheme name
RO
The buy-out price for the 2022-23 obligation period is £52.88 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 2022-23 obligation.
The mutualisation ceilings for the 2022-23 obligation period are £318,538,886.70 in England and Wales and £31,853,888.66 in Scotland (mutualisation does not apply in Northern Ireland). Mutualisation will be triggered in the event of a relevant shortfall in the buy-out fund. You can find the definition and amounts of relevant shortfall for each obligation period in Article 72 (3) in the Renewables Obligation Order 2015 as amended by the Renewables Obligation (Amendment) Order 2021, and Article 48 (3) and Schedule 3 in The Renewables Obligation (Scotland) Order 2009.
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. The average RPI percentage change during the 2021 calendar year was 4.1% (Source: Office for National Statistics).
We update the England and Wales mutualisation threshold annually based on the value of the scheme.
The buy-out prices and obligation levels for recent years are shown in the table below:
The mutualisation thresholds for England & Wales for recent years are shown in the table below:
The mutualisation threshold for Scotland will remain static at £1,540,000 for 2022-23.