On 1 October, the Department for Business, Energy and Industrial Strategy (BEIS) confirmed the 2017/18 Renewables Obligation target for England, Wales and Scotland
Electricity suppliers will need to produce 0.409 Renewables Obligation Certificates (ROCs) per MWh. This is a large rise from the 2016/17 target which was 0.348 ROCs per MWh. This rise will increase consumer’s costs by just under £3.00/MWh.
However, BEIS highlighted that there is still no decision on an exemption for Energy Intensive Industries (EIIs). Earlier this year BEIS had proposed changing the methodology for calculating the obligation level. This would mean that the (ROCs/MWh rate) would be applied to:
- 100% of electricity provided to non-EIIs
- 15% or more of the electricity supplied to EIIs.
The exemption was expected to be introduced from 1 April 2017 and state aid approval is still outstanding. A government report is expected to be published shorty covering how the obligation level for Great Britain would change, to account for the exemption if it passes State Aid.
The Renewables Obligation (RO), Feed-in Tariffs (FiT) and the Climate Change Levy (CCL), along with 8 other non-commodity costs, are all adding £££s to your energy bills. With the introduction of the EMR (Electricity Market Reform) in 2013 and the end of the Carbon Reduction Commitment (CRC) set for 2018/19, these prices are set to soar. We predict that in the 10 year period, from 2010 to 2020, these additional charges will have risen by 240%.
How can you keep track of all these costs and budget for the future?
Our team of Energy Specialists are at the forefront of energy pricing. They are experts at identifying trends, evaluating legislative changes, examining historical figures and forecasting for the future.
Their expertise has enabled us to produce the Long-Term Price Forecast Report. A market leading report that includes these charges and other influences that could affect your energy bills. Our team project increases to your energy bills annually for a 5 year period allowing you to forward budget and avoid any nasty surprises.
To find out more about the Long-Term Price Forecast Report download our factsheet here.
For more information about the EMR, download our white paper here.