Ofgem Releases Renewables Obligation for UK Utilities

Aug 13 - Datamonitor

UK energy watchdog Ofgem has published information on the size of the renewables obligation for UK energy suppliers for the 2006 to 2007 obligation period, which finished in March 2007. Ofgem said that electricity suppliers must comply with their obligation for this period before September 1, 2007.

Ofgem has responsibility for administering the UK government's renewables obligation, which requires electricity suppliers to source at least part of their electricity from renewable generators. In England, Wales and Scotland, the obligation for 2006 to 2007 was 6.7%. This figure will increase to 7.9% for 2007 to 2008, and 15.4% for 2015 to 2016, and will remain at this level until 2026 to 2027.

Meanwhile, in Northern Ireland, the obligation started at 2.5% in 2005 to 2006, will reach 6.3% in 2015 to 2016, and remain at this level until 2026 to 2027.

The watchdog said that according to information received to date from suppliers, the total renewables obligation on electricity supplied to customers across the UK is 21.6 million megawatt hours (MWh).

On electricity supplied in England and Wales it is 19.3 million MWh, and on electricity supplied in Scotland it is 2 million MWh. Meanwhile, on electricity supplied in Northern Ireland the obligation is 216,869MWh.

Energy suppliers can comply with the obligation by either presenting Ofgem with renewables obligation certificates (ROCs), which are awarded for renewable generation assets, to the value of 6.7% of electricity supplied to customers, or by using a buy-out clause that allows suppliers to pay GBP33.24 per MWh for any shortfall. Suppliers can also use a combination of ROCs and buy-out, the watchdog said.