Yesterday, the Renewables Obligation Order 2009 and Ofgem’s revised suite of guidance on the renewables obligation came into force.
Industry participants will be aware of the changes introduced by the Renewables Obligation Order 2009, which include the banding of different technologies. For more information on this, please see previous Law-Now, "The new Energy Act 2008 - impact on renewables".
In general, the changes that have been made to Ofgem’s guidance reflect the changes introduced by the Renewables Obligation Order 2009.
Suppliers should, however, be aware of a change that is not related to the Renewables Obligation Order 2009. Ofgem has removed the references in its previous guidance stating that Ofgem will not revoke renewables obligation certificates ("ROCs") which have been redeemed by suppliers. This creates uncertainty for suppliers, although Ofgem has indicated that suppliers who fail to comply with their renewables obligation because of a revocation that occurs after a ROC has been redeemed are likely to be treated sympathetically.
Suppliers entering into new contracts for the purchase of ROCs should consider whether they have adequate contractual protection to cover the risk of a ROC being revoked after it has been redeemed.
