The Renewables Obligation Order 2015

PART 2 E+W The renewables obligation

The renewables obligation E+W

7.—(1) The renewables obligation is imposed on each electricity supplier supplying electricity in England and Wales (a “designated electricity supplier”).

(2) The renewables obligation is that, subject to articles 67 and 68, each designated electricity supplier must, by the specified day, produce to the Authority, in respect of each megawatt hour of [F1 relevant electricity that it supplies] during an obligation period, the number of UK ROCs determined in accordance with [F2 articles 13 to [F3 13C]].

(3) To enable the number referred to in paragraph (2) to be determined, the Secretary of State must first determine, for the obligation period in question, calculations A and B and the total number of UK ROCs required to be produced by designated electricity suppliers in accordance with articles 8 to 12.

(4) Where the number of UK ROCs that a designated electricity supplier is required to produce by virtue of paragraph (2) is not a whole number, it is to be rounded to the nearest whole number (one-half being rounded upwards).

[F4 (5) In this Part, “relevant electricity” means—

(a) in respect of—

(i) any obligation period beginning on or after 1st April 2019; or

(ii) any month of an obligation period in respect of which a revised obligation level applies in accordance with article 13B(7)(a)(ii), (b)(ii), (8)(a) or (b)(ii),

any electricity supplied to customers in England and Wales other than EII excluded electricity; and

(b) in respect of any other period, any electricity supplied to customers in England and Wales.]

Textual Amendments

F1 Words in art. 7(2) substituted (15.12.2017) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2017 (S.I. 2017/1289), arts. 1(1), 3(2)(a)

F2 Words in art. 7(2) substituted (15.12.2017) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2017 (S.I. 2017/1289), arts. 1(1), 3(2)(b)

F3 Word in art. 7(2) substituted (21.3.2024) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2024 (S.I. 2024/403), arts. 1(1), 2(2)

F4 Art. 7(5) inserted (15.12.2017) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2017 (S.I. 2017/1289), arts. 1(1), 3(3)

Part of calculation A referable to Great Britain E+W

8.—(1) Before the start of each obligation period, the Secretary of State is to estimate, in megawatt hours, the total amount of electricity likely to be supplied to customers in Great Britain during that period by designated electricity suppliers and electricity suppliers on whom the renewables obligation has been imposed by an order made under sections 32 to 32M of the Act by the Scottish Ministers.

(2) The figure representing the number of megawatt hours so estimated for an obligation period is to be multiplied by 0.154.

Part of calculation A referable to Northern Ireland E+W

9.—(1) Before the start of each obligation period, the Secretary of State is to estimate, in megawatt hours, the total amount of electricity likely to be supplied to customers in Northern Ireland during that period by electricity suppliers on whom an obligation has been imposed by an order made under Articles 52 to 55F of the Energy (Northern Ireland) Order 2003.

(2) The figure representing the number of megawatt hours so estimated for an obligation period is to be multiplied by 0.063.

Calculation A E+W

10.—(1) The product of the calculation in article 8(2), added to the product of the calculation in article 9(2), is (for the obligation period to which those calculations relate) calculation A.

(2) Where calculation A is not a whole number, it is to be rounded to the nearest whole number (one-half being rounded upwards).

(3) References to calculation A in [F5 this Part] are to be construed accordingly.

Textual Amendments

F5 Words in art. 10(3) substituted (15.12.2017) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2017 (S.I. 2017/1289), arts. 1(1), 4

Calculation B E+W

11.—(1) Before the start of each obligation period, the Secretary of State is to estimate, in megawatt hours, the total amount of renewable electricity likely to be supplied to customers in the United Kingdom during that period by designated electricity suppliers and electricity suppliers on whom an obligation has been imposed under an order made under sections 32 to 32M of the Act by Scottish Ministers or Articles 52 to 55F of the Energy (Northern Ireland) Order 2003.

(2) Having regard to this estimate, the Secretary of State is to calculate how many UK ROCs are likely to be issued in respect of that renewable electricity during that obligation period.

(3) The figure representing the number of UK ROCs likely to be so issued, increased by 10%, is calculation B for that obligation period.

(4) Where calculation B is not a whole number, it is to be rounded to the nearest whole number (one-half being rounded upwards).

(5) References to calculation B in [F6 this Part] are to be construed accordingly.

(6) In this article “renewable electricity” means electricity which is generated from renewable sources and in respect of which UK ROCs may be issued.

Textual Amendments

F6 Words in art. 11(5) substituted (15.12.2017) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2017 (S.I. 2017/1289), arts. 1(1), 5

Determining the total number of UK ROCs to be produced in an obligation period E+W

12.—(1) Having determined calculations A and B for an obligation period, the Secretary of State is to determine the total number of UK ROCs required to be produced by designated electricity suppliers (“the total obligation”) for that period in accordance with paragraphs (2) to (4).

(2) Where calculation A is equal to or greater than calculation B for an obligation period, the total obligation for that period is calculation A.

(3) Where calculation B is greater than calculation A for an obligation period, the total obligation for that period is calculation B.

(4) References to the total obligation in [F7 this Part] are to be construed accordingly.

Textual Amendments

F7 Words in art. 12(4) substituted (15.12.2017) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2017 (S.I. 2017/1289), arts. 1(1), 6

Determining the number of UK ROCs to be produced by a designated electricity supplier in order to discharge its renewables obligation E+W

13.— [F8 (A1) This article applies in respect of an obligation period ending on or before 31st March 2019.]

(1) [F9 Subject to article 13B,] where the total obligation for an obligation period is calculation A, in order to discharge its renewables obligation in respect of electricity that it supplies to customers in England and Wales during that period, a designated electricity supplier is required to produce 0.154 UK ROCs for each megawatt hour of electricity so supplied.

(2) [F10 Subject to article 13B,] where the total obligation for an obligation period is calculation B, the number of UK ROCs that a designated electricity supplier is required to produce in order to discharge its renewables obligation in respect of electricity that it supplies to customers in England and Wales during that period is, for each megawatt hour so supplied, equal to—

(3) The Secretary of State must publish, by the 1st October preceding an obligation period, the number of UK ROCs that a designated electricity supplier is required to produce in respect of each megawatt hour of electricity that it supplies to customers in England and Wales during that period in order to discharge its renewables obligation for that period.

Textual Amendments

F8 Art. 13(A1) inserted (15.12.2017) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2017 (S.I. 2017/1289), arts. 1(1), 7(2)

F9 Words in art. 13(1) inserted (15.12.2017) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2017 (S.I. 2017/1289), arts. 1(1), 7(3)

F10 Words in art. 13(2) inserted (15.12.2017) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2017 (S.I. 2017/1289), arts. 1(1), 7(4)

[F11 Determining the number of UK ROCs to be produced by a designated electricity supplier in order to discharge its renewables obligation: obligation periods beginning on or after 1st April 2019 E+W

13A.— (1) This article applies in respect of an obligation period beginning on or after 1st April 2019.

(2) Before the start of an obligation period to which this article applies, the Secretary of State must estimate, in megawatt hours, the total amount of EII excluded electricity likely to be supplied to customers in Great Britain during that period by designated electricity suppliers and electricity suppliers on whom the renewables obligation has been imposed by an order made under sections 32 to 32M of the Act by Scottish Ministers.

(3) [F12 Subject to article 13C,] where the total obligation for the obligation period is calculation A, the number of UK ROCs that a designated electricity supplier is required to produce in order to discharge its renewables obligation is, for each megawatt hour of relevant electricity that it supplies during that period, equal to—

• 

(4) [F13 Subject to article 13C,] where the total obligation for the obligation period is calculation B, the number of UK ROCs that a designated electricity supplier is required to produce in order to discharge its renewables obligation is, for each megawatt hour of relevant electricity that it supplies during that period, equal to—

• 

(5) For the purposes of paragraphs (3) and (4)—

(a) C is the estimate made by the Secretary of State under article 8(1) of the total amount of electricity likely to be supplied to customers in Great Britain during the obligation period;

(b) D is the estimate made by the Secretary of State under paragraph (2) of the total amount of EII excluded electricity likely to be supplied to customers in Great Britain during the obligation period; and

(c) E is equal to—

.

(6) The Secretary of State must publish, by the 1st October preceding the obligation period, the number of UK ROCs that a designated electricity supplier is required to produce in respect of each megawatt hour of relevant electricity that it supplies during that period in order to discharge its renewables obligation for that period.

Textual Amendments

F11 Arts. 13A, 13B inserted (15.12.2017) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2017 (S.I. 2017/1289), arts. 1(1), 8

F12 Words in art. 13A(3) inserted (21.3.2024) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2024 (S.I. 2024/403), arts. 1(1), 2(3)

F13 Words in art. 13A(4) inserted (21.3.2024) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2024 (S.I. 2024/403), arts. 1(1), 2(4)

Revising the number of UK ROCs to be produced by a designated electricity supplier for the 2017/18 and 2018/19 obligation periods E+W

13B.— (1) This article applies in respect of—

(a) the 2017/18 obligation period; and

(b) the 2018/19 obligation period.

(2) Subject to paragraph (3), following the publication under article 13(3) of an obligation level, the Secretary of State may revise that obligation level in accordance with paragraph (5).

(3) The Secretary of State must not revise an obligation level under paragraph (2)—

(a) after the 23rd November falling within the obligation period to which the obligation level relates; or

(b) more than once in relation to any obligation period.

(4) Before revising an obligation level under paragraph (2), the Secretary of State must estimate, in megawatt hours, the total amount of EII excluded electricity likely to be supplied to customers in Great Britain during the obligation period by designated electricity suppliers and electricity suppliers on whom the renewables obligation has been imposed by an order made under sections 32 to 32M of the Act by Scottish Ministers.

(5) Any revision of an obligation level under paragraph (2) must be calculated in accordance with—

(a) paragraph (3) of article 13A, where the total obligation for the obligation period is calculation A; or

(b) paragraph (4) of article 13A, where the total obligation for the obligation period is calculation B,

save that the references to “D” in the formulae set out in paragraphs (3) and (4) of article 13A are to be treated as references to the estimate made by the Secretary of State under paragraph (4) of this article of the total amount of EII excluded electricity likely to be supplied to customers in Great Britain during the obligation period.

(6) If the Secretary of State revises an obligation level under paragraph (2), the Secretary of State must publish the revised obligation level within seven days.

(7) In the case of the 2017/18 obligation period—

(a) if the Secretary of State has published a revised obligation level under paragraph (6) on or before 31st October 2017, the number of UK ROCs a designated electricity supplier is required to produce in order to discharge its renewables obligation is—

(i) for each megawatt hour of relevant electricity that it supplies during the part of the obligation period beginning with the first day of the obligation period and ending with 31st December 2017, the original obligation level; and

(ii) for each megawatt hour of relevant electricity that it supplies during the part of the obligation period beginning with 1st January 2018 and ending with the last day of the obligation period, the revised obligation level;

(b) if the Secretary of State has published a revised obligation level under paragraph (6) on or after 1st November 2017, the number of UK ROCs a designated electricity supplier is required to produce in order to discharge its renewables obligation is—

(i) for each megawatt hour of relevant electricity that it supplies during the part of the obligation period beginning with the first day of the obligation period and ending with the last day of the third month after the publication date, the original obligation level; and

(ii) for each megawatt hour of relevant electricity that it supplies during the part of the obligation period beginning with the first day of the fourth month after the publication date and ending with the last day of the obligation period, the revised obligation level.

(8) In the case of the 2018/19 obligation period—

(a) if the Secretary of State has published a revised obligation level under paragraph (6) on or before 31st December 2017, the number of UK ROCs a designated electricity supplier is required to produce in order to discharge its renewables obligation is, for each megawatt hour of relevant electricity that it supplies during the obligation period, the revised obligation level;

(b) if the Secretary of State has published a revised obligation level under paragraph (6) on or after 1st January 2018, the number of UK ROCs a designated electricity supplier is required to produce in order to discharge its renewables obligation is—

(i) for each megawatt hour of relevant electricity that it supplies during the part of the obligation period beginning with the first day of the obligation period and ending with the last day of the third month after the publication date, the original obligation level; and

(ii) for each megawatt hour of relevant electricity that it supplies during the part of the obligation period beginning with the first day of the fourth month after the publication date and ending with the last day of the obligation period, the revised obligation level.

(9) In this article—

“2017/18 obligation period” means the obligation period beginning on 1st April 2017;

“2018/19 obligation period” means the obligation period beginning on 1st April 2018;

“obligation level” means the number of UK ROCs that a designated electricity supplier is required to produce in respect of each megawatt hour of electricity that it supplies to customers in England and Wales during an obligation period in order to discharge its renewables obligation for that period as determined under article 13(1) or (2);

“original obligation level” means the obligation level as published under article 13(3);

“publication date” means the date of publication of the revised obligation level under paragraph (6); and

“revised obligation level” means the obligation level as revised in accordance with paragraph (5).]

Textual Amendments

F11 Arts. 13A, 13B inserted (15.12.2017) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2017 (S.I. 2017/1289), arts. 1(1), 8

[F14 Revision of the obligation level published on 27th September 2023 in respect of the 2024/25 obligation period E+W

13C.— (1) The Secretary of State may revise the obligation level published on 27th September 2023 in respect of the 2024/25 obligation period.

(2) The power conferred by paragraph (1) may only be exercised once and may not be exercised after 31st March 2024.

(3) Before exercising the power conferred by paragraph (1), the Secretary of State must estimate in megawatt hours the total amount of EII excluded electricity likely to be supplied to customers in Great Britain during the 2024/25 obligation period by—

(a) designated electricity suppliers; and

(b) electricity suppliers on whom the renewables obligation has been imposed by an order made under sections 32 to 32M of the Act by the Scottish Ministers.

(4) A revision of the obligation level for the 2024/25 obligation period is to be calculated as follows—

(a) where the total obligation for the 2024/25 obligation period is calculation A, revision of that obligation level is, subject to sub-paragraph (c), to be calculated in accordance with article 13A(3);

(b) where the total obligation for the 2024/25 obligation period is calculation B, revision of that obligation level is, subject to sub-paragraph (c), to be calculated in accordance with article 13A(4); and

(c) in the formulae set out in article 13A(3) and 13A(4), “D” is to be treated as a reference to the amount estimated by the Secretary of State pursuant to paragraph (3).

(5) Where, in exercise of the power conferred by paragraph (1), the Secretary of State revises the obligation level in respect of the 2024/25 obligation period, the Secretary of State must publish the revised obligation level within the period of seven days beginning with the day on which that power is exercised.

(6) In exercising the power conferred by paragraph (1), the Secretary of State may provide that the obligation level published on 27th September 2023 applies for part of the 2024/25 obligation period, and the revised obligation level as calculated in accordance with paragraph (4) applies for the remainder of the 2024/25 obligation period.

(7) In this article—

“2024/25 obligation period” means the obligation period beginning on 1st April 2024; and

“obligation level” means the number of UK ROCs that a designated electricity supplier is required to produce in respect of each megawatt hour of relevant electricity that it supplies to customers in England and Wales during an obligation period in order to discharge its renewables obligation for that period as determined under article 13A(3) or (4).]

Textual Amendments

F14 Art. 13C inserted (21.3.2024) by The Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2024 (S.I. 2024/403), arts. 1(1), 2(5)

Further provision in relation to the production of UK ROCs E+W

14.—(1) A designated electricity supplier may discharge its renewables obligation by the production to the Authority of a Northern Ireland certificate.

(2) A designated electricity supplier may discharge up to 25% of its renewables obligation in respect of an obligation period by producing to the Authority UK ROCs relating to electricity supplied in the immediately preceding obligation period.

(3) Subject to paragraph (4), no more than 4% of a designated electricity supplier's renewables obligation may be satisfied by the production of UK ROCs issued in respect of electricity generated from bioliquid.

(4) The limit set out in paragraph (3) does not apply to the production of UK ROCs issued in respect of electricity—

(a) generated by a generating station to which article 34 applies,

(b) generated by a qualifying CHP station which has, as at the date of generation of the electricity, a total installed capacity of less than 1 megawatt,

(c) generated from advanced fuel, or

(d) generated in the way described as “energy from waste with CHP” in Schedule 5.

(5) A designated electricity supplier must not produce to the Authority a UK ROC which is previously been or has previously been produced to the Northern Ireland authority under a NIRO Order.