Ofgem: “Energy suppliers have left a RO payment shortfall of £218m”

A total of 28 suppliers did not submit ROCs or make payments sufficient to meet their obligations

Big Zero Report 2022

A total of 28 suppliers did not submit Renewable Obligation Certificates (ROCs) or make payments sufficient to meet their obligations.

The ROCs are designed to encourage generation of electricity from eligible renewable energy sources in the UK. They are issued by Ofgem.

That’s according to Ofgem’s Renewables Obligation annual report which estimates that the lack of payment resulted in a shortfall of £218.3 million in the buy-out/late payment funds.

The regulator said that resulted in mutualisation being triggered on the RO and Renewable Obligation Scotland (ROS) for the fourth successive year.

The report which presents the level of compliance of electricity suppliers to the scheme suggests suppliers presented 105.26 million ROCs towards the total UK obligation of 119.09 million ROCs in 2020-2021.

During the same period, Ofgem issued 109.25 million ROCs to renewable generating stations – this ROC issue represents 80.35TWh of renewable electricity generation.

This generation is a decrease of 5.4% from last year but reflects a reduction in total UK electricity supply between 2019-20 and 2020-21, which fell by 5.8%, Ofgem said.

The report also suggests all renewable energy technology types saw a decrease in ROC issue compared to 2019-20.

The largest drop in ROCs issued was a 10.4% decrease in onshore wind installations.

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