Ringfencing of RO receipts


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For the 2023/24 scheme year onwards, licensed electricity suppliers (‘suppliers’) in Great Britain need to protect their RO under a process called ‘RO ringfencing’.

RO ringfencing is a requirement introduced by standard licence condition 30 of the electricity supply licence. It requires suppliers to meet their accruing RO by holding ROCs, protecting the funds equivalent to the buy-out price of their obligation in an ‘RO Credit Cover Mechanism’ , or a combination of the two.

The RO Ringfencing Guidance and the RO Ringfencing Schedule provide guidance to Suppliers in relation to the obligations under Standard Licence Condition 30 (SL30) of the Standard Conditions of the Electricity Supply Licence.