Renewables Obligation

(asked on 29th June 2026) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether his Department plans to remove the renewable obligation levy.


Answered by
Michael Shanks Portrait
Michael Shanks
Minister of State (Department for Energy Security and Net Zero)
This question was answered on 7th July 2026

Since 1 April this year, 75% of the domestic costs of the Renewables Obligation (RO) have been funded by the Exchequer. This shifts the balance from levies on bills to public spending, resulting in an average £150 reduction in energy costs. Over three years, £7 billion worth of RO levies will be funded through public expenditure, providing short-term relief and greater long-term benefits for consumers.

DBT have also introduced the British Industrial Competitiveness Scheme which aims to exempt over 10,000 manufacturing businesses from various levies, including the RO, with the aim of cutting industrial electricity bills by up to 25%.

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