Question

To ask the Secretary of State for Energy and Climate Change, what role is played by Ofgem in the calculation and recovery of the renewable obligation certificate from customers.

The Renewables Obligation (RO) places an obligation on UK electricity suppliers to source a specified proportion of the electricity they supply to customers from renewable sources. This proportion – called ‘the Obligation’ – is set each year by government in line with legislation. The scheme is administered by Ofgem, who issue Renewables Obligation Certificates (ROCs) to generators in relation to the renewable electricity they generate. Further details of how the scheme operates can be found on Ofgem’s website:

https://www.ofgem.gov.uk/environmental-programmes/renewables-obligation-ro?page=1#block-views-publications-and-updates-block.

It is assumed that the cost of the RO to suppliers is passed on to consumers through their energy bills. The total cost that can be levied on consumers through the RO is controlled through DECC’s Levy Control Framework.